11:29 AM EDT, 08/26/2024 (MT Newswires) -- Varonis Systems ( VRNS ) is leveraging generative artificial intelligence to enhance its offerings, which has begun to impact its pipeline, with expectations for gradual growth into 2025, Wedbush said in a note Monday.

The data security firm has "become more strategic in larger cyber security deals and sales cycles across the enterprise landscape," Wedbush said, citing its recent surveys.

While generative AI did not contribute to Varonis' ( VRNS ) 2024 guidance metrics, it still "represents a major tailwind" to the company's business model, according to the note.

Generative AI has impacted the company's pipeline, which is likely to expand gradually into 2025 and beyond, while Software as a Service conversions see shorter sales cycles, Wedbush added.

"We believe [Varonis ( VRNS )] represents an under-the-radar cyber security and AI play with further accelerating [Software as a Service] adoption while leveraging generative AI in its security platform as the company now has a clear path of reaccelerating its growth throughout the back half of 2024 and into 2025," Wedbush said.

Wedbush maintained an outperform rating and $67 price target on Varonis ( VRNS ) stock.

Price: 57.67, Change: +0.40, Percent Change: +0.70