On Wednesday, Truist Securities adjusted its outlook on Varonis Systems (NASDAQ:VRNS), a data security and analytics company, by increasing the price target from $50.00 to $55.00. The firm has reiterated a Buy rating for the company's stock.
The price target revision follows a business update with Varonis Systems' CEO, Yaki Faitelson, and COO & CFO, Guy Melamed. During the update, the transition of the company to a Software as a Service (SaaS) model was a key point of discussion. The executives elaborated on how the SaaS solution has created significant opportunities for customers to engage with Varonis' products.
Truist Securities expressed increased optimism after the meeting, which included a demonstration of Varonis' SaaS solution. The firm's outlook is buoyed by the company's potential to meet its goal of becoming a predominantly SaaS organization.
The investment firm's decision to raise the price target reflects expectations of an expanding terminal multiple for Varonis Systems. The higher target suggests that Truist Securities anticipates the company's shift towards a SaaS model to positively impact its financial performance in the future.
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