Varonis Methods is poised to make a comeback within the latter a part of 2024 as knowledge safety demand picks up, based on JPMorgan. Analyst Brian Essex upgraded the inventory to obese from impartial and set a December 2025 value goal of $54, up from $50. The brand new goal suggests upside of roughly 29% from Thursday’s shut. Shares have dropped 6.7% this yr as knowledge safety shares noticed a broader decline, making a compelling shopping for alternative for traders heading into the second half of the yr, the analyst wrote in a Friday observe. VRNS YTD mountain Varonis yr up to now “We see a beautiful setup for the inventory into the again half of the yr as expectations stay affordable, demand for Knowledge Safety is accelerating, and we may see a number of tailwinds together with renewal catalysts in 3Q and 4Q, enhancing fundamentals with transition execution, and traction from not too long ago launched [managed data detection and response software]. As we head into FY25, we may additionally see AI tailwinds emerge,” Essex stated. In keeping with Essex, knowledge safety demand is rising as ransomware assaults are anticipated to extend, with a breach more likely to occur each two seconds in 2031. That may be up from 11 seconds in 2021, based on knowledge he cited from Cybersecurity Ventures. Corporations will due to this fact want to guard their knowledge uncovered to those assaults, particularly as adoption of generative synthetic intelligence grows, he stated. “Though elevated ranges of demand are driving rising ranges of competitors throughout the information safety house, we view Varonis as among the best positioned to capitalize on knowledge safety demand with a Better of Breed Knowledge Safety platform,” the analyst added. Varonis got here out with a better-than-expected quarterly print in early Could, posting a lack of 3 cents per share on $114 million in income, whereas analysts polled by FactSet known as for a lack of 9 cents per share on $113.7 million in income.
