Varonis' Guidance Cut Triggers Analyst Downgrades, Price Cuts

Anusuya Lahiri

Tue, Nov 1, 2022, 1:48 PM2 min read

In this article:

Needham analyst Alex Henderson maintained Varonis Systems (NASDAQ: VRNS) with a Buy and lowered the price target from $32 to $26.
Varonis shares are down 33% pre-market post their CY3Q print and sharply lowered CY4Q and CY23 outlook.
A combination of FX headwinds, weaker than expected closure rates in the Federal market, more challenging deal mechanics, and the expectation that these pressures evidenced in EMEA and ROW will be coming to the U.S. in CY23.
Varonis offered a steep decline in its growth outlook to 10%-12% in CY4Q and CY23, below Street expectations of 20%+ growth.
The seriousness of these pressures leads Varonis to execute a 5% staff cut to offset the pressures.
He thinks VRNS will likely remain under pressure through year-end. He also thinks the shares have been de-risked for CY23. He cut his estimates.
Piper Sandler analyst Rob Owens downgraded from Overweight to Neutral and lowered the price target from $37 to $20.
Wells Fargo analyst Andrew Nowinski downgraded from Overweight to Underweight and lowered the price target from $35 to $24.
Jefferies analyst Joseph Gallo maintained a Buy and lowered the price target from $35 to $30.
Barclays analyst Saket Kalia maintained an Equal-Weight and lowered the price target from $32 to $22.
Wedbush analyst Daniel Ives downgraded VRNS from Outperform to Neutral and lowered the price target from $40 to $20.
JMP Securities analyst Erik Suppiger maintained a Market Outperform and lowered the price target from $73 to $63.
Morgan Stanley analyst Hamza Fodderwala maintained an Equal-Weight and lowered the price target from $32 to $22.
RBC Capital analyst Matthew Hedberg maintained an Outperform and lowered the price target from $35 to $29.
Cowen & Co analyst Shaul Eyal maintained an Outperform and lowered the price target from $53 to $35.
Truist Securities analyst Joel Fishbein maintained a Buy and lowered the price target from $50 to $40.
Craig-Hallum analyst Chad Bennett downgraded from Buy to Hold and lowered the price target from $35 to $22.
Price Action: VRNS shares traded lower by 34.81% at $17.45 on the last check Tuesday.
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Latest Ratings for VRNS

Date	Firm	Action	To
Feb 2022	Wedbush	Maintains	Outperform
Feb 2022	UBS	Maintains	Buy
Oct 2021	RBC Capital	Maintains	Outperform

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Varonis' Guidance Cut Triggers Analyst Downgrades, Price Cuts

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