
Varonis Systems (VRNS) Stock Forecast & Price Target
Varonis Systems (VRNS) Analyst Ratings
Bulls say
Varonis Systems is experiencing a significant transformation as it shifts from on-premises solutions to a cloud-based software-as-a-service model, which presents robust cross-sell opportunities in response to the growing emphasis on data security. The company's annual recurring revenue (ARR) growth projections for 2025 are anticipated to improve, potentially exceeding 20% as net revenue retention (NRR) reaches 110% and new customer acquisition grows by 10%. Furthermore, Varonis's successful execution of its SaaS transition and its enhanced relationships with partners like Microsoft, along with an increased SaaS ARR target, reflect a strengthening competitive position within a rapidly expanding cybersecurity market.
Bears say
Varonis Systems faces significant challenges that contribute to a negative outlook on its stock. The firm's recent acquisition is expected to create approximately a $15 million headwind to margins, leading to lowered operating income and EPS guidance for Q3 and the full year, indicating potential strain on profitability. Additionally, the transition to a cloud-based model, characterized by lower upfront revenue recognition from SaaS sales, may negatively impact revenue margins in the near term, alongside heightened risks related to cybersecurity effectiveness and the nascent nature of its market, which further complicates the firm's competitive positioning.
This aggregate rating is based on analysts' research of Varonis Systems and is not a guaranteed prediction by Public.com or investment advice.
Varonis Systems (VRNS) Analyst Forecast & Price Prediction
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