11 Best Cybersecurity Stocks to Buy According to Wall Street Analysts

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8. Varonis Systems, Inc. (NASDAQ:VRNS)

Average Analyst Upside: 11.81%

Number of Hedge Fund Holders: 42

Varonis Systems Inc. (NASDAQ:VRNS), headquartered in New York City with R&D operations in Herzliya, Israel, is a cybersecurity software company specializing in managing and securing unstructured data. Its platform utilizes User Behavior Analytics to detect and mitigate potential cyber threats.

Citi maintained its Neutral rating for Varonis Systems Inc. (NASDAQ:VRNS) but raised its price target to $57 from $50, reflecting cautious optimism following the company’s solid Q3 performance. The analyst highlighted a 17.7% year-over-year growth in ARR, indicating modest acceleration. While some areas underperformed, the new target acknowledges the company’s improving potential.

Varonis Systems Inc. (NASDAQ:VRNS) reported a revenue beat in its latest earnings, despite underperformance in the Federal sector, which missed projections by several million dollars. ARR demonstrated a slight quarter-over-quarter growth of 30 basis points, while the $52 million SaaS NNARR (Net New Annual Recurring Revenue) showed stronger quarter-over-quarter improvement. These results position the company competitively in the data security, Data Security Posture Management, and data resiliency markets. The company also highlighted the monetization of GenAI as a promising narrative, further supporting its valuation in the face of a decent stock performance.

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