2023-04-21 09:55:33 ET
Varonis Systems ( NASDAQ: VRNS ) shares rose more than 2.5% in early trading on Friday as investment firm Stephens highlighted the cybersecurity company's "strong competitive moat" and minimal competition in its markets.
Analyst Brian Colley started Varonis Systems ( VRNS ) shares with an overweight rating and per-share price target of $32, stating that the company is a leader in the data security market and with a $37B total addressable market in front of it, along with "multiple" tailwinds in the form of zero trust adoption, growth in unstructured data and increasing regulations, the company has an "ample runway" for sustainable growth over the long haul.
"While macro-related headwinds have resulted in a muted growth outlook this year, we believe the company's 2023 guidance bakes in significant conservatism and should be easily beatable," Colley wrote in an investor note.
Colley also noted that the company's new software-as-a-service platform is an "underappreciated" catalyst that could not only "dramatically" increase adoption, but also accelerate annual recurring revenue growth and free cash flows past Wall Street's expectations.
Earlier this month, Varonis Systems ( VRNS ) opened its first data center in Sydney, Australia to offer solutions to its software-as-a-service customers .
For further details see:
Varonis rises as Stephens highlights 'strong competitive moat,' minimal competition