Varonis Systems: Barclays Upgrades to Overweight, PT Raised to $70

Varonis Systems: Barclays Upgrades to Overweight, PT Raised to $70

In a significant move, Barclays has upgraded its rating on Varonis Systems, Inc. (NASDAQ: VRNS) to Overweight and increased its price target from $65 to $70. The upgrade comes on the heels of positive customer and partner checks, indicating sustained demand for the company’s cloud-native platform. The decision was made following a series of strategic moves in 2025, including the acquisition of SlashNext and integration with OpenAI’s ChatGPT Enterprise Compliance API.

Varonis Systems has been a standout performer in the mid-cap tech sector over the past three years, driven by steady SaaS adoption and targeted AI integrations. The company has expanded its role in enterprise data security by extending its capabilities beyond file-system protection into email, collaboration, and AI-workload security. These initiatives have positioned Varonis as a broad data-security platform, protecting sensitive information across on-premise, cloud, and SaaS environments.

The acquisition of SlashNext, an AI-driven email-security firm, and the integration with OpenAI’s ChatGPT Enterprise Compliance API have been pivotal in this evolution. These moves have allowed Varonis to offer real-time data-classification and monitoring in generative-AI environments, addressing the growing need for comprehensive security solutions in the digital age.

While Varonis Systems presents an attractive investment opportunity, Barclays acknowledges that certain AI stocks may offer greater upside potential and carry less downside risk. Investors should consider this upgrade and the increased price target as a positive signal for Varonis Systems' continued growth and strong execution in its transition to a recurring-revenue model.