RBC Capital has adjusted its outlook on Varonis Systems (VRNS, Financial), reducing the stock's price target from $65 to $55. Despite maintaining an Outperform rating, this change reflects the broader uncertainties facing the software sector as the firm prepares for its first-quarter results.
The move comes as global trade tensions, especially the fluctuating situation regarding tariffs, continue to generate uncertainty in software purchasing cycles. Though a temporary halt in reciprocal tariffs might offer some respite, the inconsistent nature of trade policies is causing concern.
RBC Capital indicates that while there are still attractive buying opportunities within the sector, the unpredictability in the macroeconomic environment makes it more challenging to have strong confidence in performance predictions at this time. The firm suggests a cautious approach until more stable broader economic conditions are evident.
