Why Varonis stock jumped today

What happened

Sections of Varonis (NASDAQ: VRNS) it jumped as much as 10% today after a Wall Street analyst raised its stock price target. Truist Securities confirmed its purchase rating on Varonis while raising the valuation estimate from $ 145 to $ 160. Separately, the company announced that it had met the Standard Criteria certification from the Partnership. National Information Validation (NIAP).

so what

The cybersecurity technology department has been reeling in the last few days after a major hack involving a network management software provider SolarWinds that affected several U.S. government agencies and other corporations. Even enterprise software behemoth Microsoft admitted to being affected by the breach.

The event is likely to drive higher demand in the IT market for cybersecurity offerings, particularly around regulation and compliance. Varonis has a strong position in governance and compliance and should benefit from increased costs, according to analyst Joel Fishbein.

A person typing on a laptop with a picture screen over it

Image source: Getty Images.

NIAP certification obtained by Varonis relates specifically to meeting government security standards for cybersecurity and IT products used in national security systems.

“Governments and national defense agencies rely on Varonis to obtain highly sensitive data and look for stealth threats from enemies and intellectuals,” Varonis President of the U.S. Department of Public Affairs Michael Wallace said in a statement. “After rigorous testing and evaluation, we are pleased to receive the Standard Criteria certification from the National Information Validation Partnership to further demonstrate our commitment to our public sector customers worldwide.”

Now what

Fishbein believes Varonis could be ready to hit consensus estimates if it can continue to add customers. Varonis expects revenue in the fourth quarter to range from $ 82 million to $ 85 million, but that forecast was released in late October before the cyberattack.