Wells Fargo Upgrades Varonis (VRNS) to Overweight, Citing Rising Demand for AI-Powered Data Protection

Varonis Systems, Inc. (NASDAQ:VRNS) is one of the best mid cap AI stocks to buy right now. Varonis Systems, Inc. (NASDAQ:VRNS) is one of the best midcap AI stocks to buy right now. On August 11, 2025, Wells Fargo upgraded Varonis from Equal Weight to Overweight and raised its price target from $51 to $70, citing accelerating demand for AI-native data protection solutions. The firm highlighted Varonis’ positioning within the Agentic AI trend, noting that the company is increasingly benefiting from enterprise adoption of automated data security tools, including its growing managed detection and response (MDR) offering.

Wells Fargo expects revenue to climb to $806 million in 2026 and reach $968 million by 2027, representing a 26 percent and 20 percent year-over-year increase, respectively. The firm also raised its operating margin forecast for fiscal 2027 to at least 10 percent, well above the previous consensus of around 7.4 percent. Analysts noted that new go-to-market initiatives and continued expansion of Varonis’ Microsoft partnership could serve as additional catalysts for annual recurring revenue growth over the next two years.

Varonis Systems is a cybersecurity software company headquartered in Miami, Florida. It specializes in protecting enterprise data through automated access controls, threat detection, and data classification tools.

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