RBC Capital Downgrades Varonis Systems (VRNS) to Sector Perform

RBC Capital analyst Matthew Hedberg downgraded Varonis Systems (NASDAQ: VRNS) from Outperform to Sector Perform with a price target of $49.75 (from $52.00).

The analyst comments: “Varonis announced its intent to be acquired by Proofpoint in an all-cash transaction for $49.75/share valued at ~$6.3B. We think the acquisition makes sense as competition in the data security market has intensified in recent years and believe Varonis could be more successful as part of a larger platform. Given the M&A reports since June, and what management categorized in the PR as an "extensive outreach" to potential strategic and financial buyers during the process, we do not expect additional bidders. As such, we are downgrading VRNS to Sector Perform and decreasing our price target to $49.75 from $52.”

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 $47.34 yesterday.

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