Jefferies Upgrade Varonis Systems from Hold to Buy, Raises PT to $65

Varonis Systems, Inc. (NASDAQ:VRNS) is one of the Best Cybersecurity Stocks to Buy Under $100. On July 24, Jefferies upgraded Varonis Systems, Inc. (NASDAQ:VRNS) stock from Hold to Buy, raising its price target from $50 to $65.

Joseph Gallo from Jefferies raised the rating and price target on VRNS as the analysts believe cybersecurity spend will remain robust and continue to hold a steady percentage of software budgets in the coming years. Varonis Systems offers small-cap exposure to AI in the space. During Q2 2025, the company saw a notable increase in SaaS revenue, growing significantly to $105.9 million from $44.8 million year-over-year. VRNS remains one of Gallo’s favorite stocks for the second half of 2025.

Gallo also pointed out that Varonis is well-positioned to address the increasingly important data governance market as generative AI adoption materializes. The SaaS revenue growth during Q2 is a major indicator of where the company is heading.

Varonis Systems, Inc. (NASDAQ:VRNS) is a data security company that offers a cloud-native data security platform. The company’s system discovers and classifies critical data, removes exposures, and detects advanced threats with AI-powered automation.

While we acknowledge the potential of VRNS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.