20 Best Artificial Intelligence (AI) Stocks to Buy According to Analysts

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

Number of Hedge Fund Holders: 42

Average Upside Potential: 43.6%

Varonis Systems, Inc. (NASDAQ:VRNS) is a leader in data security, which has significantly integrated AI into its offerings to enhance data protection and streamline security operations. Some of the critical initiatives include Athena AI, AI Security Solutions, and AI-powered Data Discovery and Classification. Cantor Fitzgerald initiated coverage on the shares of Varonis Systems, Inc. (NASDAQ:VRNS), providing an “Overweight” rating and a price target of $60.00. The firm cited that the increasing importance of data security investments bodes well for the company.

The firm added that numerous trends have been fueling this focus, such as the adoption of AI and ML workloads, and accelerated growth of data volumes. Such trends, together with the shift towards hybrid cloud environments and technological advancements enhancing user experience, can boost Varonis Systems, Inc. (NASDAQ:VRNS)’s performance. Looking ahead, the firm noted that generative AI is a key focus, which can significantly influence annual recurring revenue in fiscal 2025.

Numerous key growth drivers have been propelling Varonis Systems, Inc. (NASDAQ:VRNS)’s growth in the competitive cybersecurity market. One of the critical drivers is the company’s Generative AI (GenAI) technology, which has been garnering attention from partners and customers. Another growth catalyst is the Managed Data Detection & Response (MDDR) offering. This service provides automated threat response capabilities and can see increased adoption across Varonis Systems, Inc. (NASDAQ:VRNS)’s customer base.