Needham & Company Upgrades Varonis Systems (VRNS) to Buy

August 10, 2016 7:29 AM EDT
Get Alerts VRNS Hot Sheet
Price: $27.25 -0.37%

Rating Summary:
    7 Buy, 2 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 11 | Down: 31 | New: 42
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Needham & Company upgraded Varonis Systems (NASDAQ: VRNS) from to Buy with a price target of $34.00.

Analyst Scott Zeller commented, "The VRNS JuneQ results were a small beat and raise, and the performance across the franchise was balanced. We have been cautious on VRNS from the first guide-down in May 2015 when shares were at $27. Since that “re-set” in the JuneQ15 guidance, Varonis had in-line or slight beat and reiterate quarters; CY16 has seen better momentum, with the initial guide above consensus revenue for CY16 and MarQ and JuneQ have been “small beat and raise”. A key driver of our upgrade is management's observation that “emergency (security) spending happened and we didn’t benefit”. As such, we believe VRNS’s high-volume, low-ASP model continues to grind higher, and we believe estimates are set appropriately for (modest) upward revisions. Raising CY16 and CY17 modestly, we establish a $34 target, which is 4.5x EV/CY17 revenue. Upgrade to BUY."

For an analyst ratings summary and ratings history on Varonis Systems click here. For more ratings news on Varonis Systems click here.

Shares of Varonis Systems closed at $26.00 yesterday.



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