Top analyst Erik Suppiger highlights Varonis and OneSpan as key opportunities in a booming sector expected to reach $563 billion by 2032
Cybersecurity: The Quiet Giant of Tech Investing
While AI dominates headlines, cybersecurity is quietly becoming one of the most critical investment themes on Wall Street. The rise in data breaches, fraud, and digital threats has pushed organizations to tighten defenses—fueling a massive growth wave.
- The global cybersecurity market hit $193 billion in 2024 and is projected to grow to over $218 billion in 2025.
- With a CAGR of 14.4%, it’s expected to nearly triple to $563 billion by 2032.
- This growth is drawing analyst attention—including from Erik Suppiger, a top-ranked voice from B. Riley.
Varonis Systems (VRNS): AI-Powered Data Protection
Miami-based Varonis Systems is riding high on the strength of its AI-driven, cloud-native data security platform. With a $6.4 billion market cap and a strong recurring revenue stream, Varonis is positioned as a data-first security leader.
- Services include data access governance, identity protection, and real-time response.
- The company focuses on protecting data at the source, across cloud, hybrid, SaaS, and IaaS environments.
- Varonis reported $152.2 million in Q2 revenue, up 17% year-over-year, with $82.7 million in free cash flow for H1 2025.
Its annual recurring revenue (ARR) jumped 19% to $693.2 million, with guidance of $748M–$754M for full-year 2025.
Suppiger’s Take:
The analyst sees differentiated automation and a data-first model as Varonis’ key strengths. With the company nearing completion of its SaaS migration, he expects revenue and earnings to accelerate in FY26. Suppiger rates VRNS a Buy, with a $80 price target, implying 38% upside.
- Current Price: $58.49
- Average Price Target: $63.56 → 9% upside
OneSpan Inc. (OSPN): Trusted by Global Financial Leaders
OneSpan, based in Boston, focuses on access security, multi-factor authentication (MFA), e-signatures, and fraud protection. Its solutions are trusted by two-thirds of the world’s 100 largest banks and enterprise clients like IBM, NASA, and RBC.
- Offers security for transactions, mobile apps, and workforce authentication.
- In June 2025, OneSpan acquired Nok Nok Labs, adding passwordless authentication to its suite.
- Processes over 10 billion secure authentication transactions per year.
In 2Q25, OneSpan reported $59.84 million in revenue, down slightly year-over-year but beating forecasts. Non-GAAP EPS of $0.34 topped expectations by $0.05. ARR is now guided between $186M–$192M, up from earlier projections.
Suppiger’s Take:
He cites growing MFA demand, eSignature expansion, and a blue-chip client base as pillars of OneSpan’s strength. CEO Victor Limongelli’s leadership since 2024 has sharpened execution. With ~30% adjusted EBITDA margins, strong subscription revenue, and an 8.6x CY27E EPS valuation, Suppiger calls OSPN undervalued with high upside.
- Suppiger Price Target: $23 → 55% upside
- Current Price: $14.82
- Average Target Price: $17.63 → 19% upside
Why This Matters to Investors
Cybersecurity’s growth runway is long—and backed by necessity, not hype. As AI, cloud computing, and remote work expand attack surfaces, firms like Varonis and OneSpan stand out as mission-critical enablers.
- Varonis appeals with automated, AI-based protection and a strong growth pipeline post-SaaS migration.
- OneSpan offers a diverse client base, exposure to finance and compliance-heavy sectors, and a compelling valuation.
For investors, both represent compelling cybersecurity bets with differentiated strategies and strong fundamentals.
Short Summary:
Cybersecurity is emerging as a major growth sector, expected to triple by 2032. Analyst Erik Suppiger highlights Varonis and OneSpan as standout picks. Varonis offers scalable AI-powered data protection, while OneSpan delivers trusted access security to major institutions—both with upside potential for investors.