RBC Capital analyst Matthew Hedberg lowered the price target on Varonis Systems (NASDAQ: VRNS) to $60.00 (from $72.00) while maintaining a Outperform rating.

The analyst comments "Varonis reported disappointing results as ARR & revenue missed expectations due to Fed and enterprise on-prem subscription softness. As such, CY/25 ARR guidance was reduced to +14.5% y/y growth vs +17%, previously. However, SaaS continues to perform well with strong demand and healthy SaaS NRR. While we believe the Q4/25 guide is de-risked, questions about CY/26 growth given the Q4/26 on-prem end-of-life will likely remain a ST overhang. Maintain OP and lower PT to $60 from $72 on reduced estimates as we continue to like the LT story but believe shares may be range-bound in the ST."