Rosenblatt and DA Davidson cut Varonis to Neutral, Wedbush keeps its rating

what happened

Analysts at Rosenblatt and DA Davidson downgraded Varonis Systems shares to Neutral and set a price target of $49.75. Wedbush, meanwhile, maintained its Neutral rating with the same target. The target implies 5.1% upside from the October 15 close of $47.34. The information comes from TradingView, citing data from Benzinga.

Rosenblatt points to uncertainty: the company has no earnings call planned ahead of its third-quarter 2026 results, and speculation about a possible sale, along with reliance on committed equity and debt financing, adds caution. DA Davidson flags risks from the shift from on-premises software to SaaS, possible customer churn and dependence on channel partners. Wedbush links the situation to the cloud transition and rising consolidation in the data security sector.

why it matters

For the market, this mainly signals doubts about the company's growth ahead of its quarterly report. Rating changes from a few brokers usually have a contained effect on a stock, but with sale rumors volatility may persist.

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