Needham downgrades Varonis Systems to 'hold'

Varonis Systems

02/02/2023 12:03

** Shares of data analytics co Varonis Systems Inc  VRNS.O 
down ~1% at $26.85 premarket 
    ** Needham downgrades stock to "hold" from "buy"
    ** Brokerage bearish on co's decision to transition to
software-as-a-service (SaaS) platform led by demand uncertainty
    ** Needham notes co's lowered FY23 annual recurring revenue
forecast, hit by macroeconomic slowdown in EMEA region;
anticipates slowdown to spillover to the U.S.
    ** 9 of 20 brokerages rate the stock "buy" or higher, 9
"hold" and 2 "sell" or lower; their median PT is $26 - Refinitiv
    ** VRNS stock rose 13.3% in January, lost 51% in 2022
 (Reporting by Shristi Achar A in Bengaluru)
 ((Shristi.AcharA@thomsonreuters.com;))