After Monness and Deutsche Bank assigned a Buy rating to Red Hat in the last month, the company received another Buy, this time from Oppenheimer. Analyst Ittai Kidron maintained a Buy rating on Red Hat (NYSE: RHT) yesterday and set a price target of $175. The company’s shares closed yesterday at $171.16, equals to its 52-week high of $171.16.
Kidron noted:
“We attended Red Hat’s annual customer conference. The company didn’t announce any major new technologies and maintained its financial outlook. Instead, the focus was on evolving and rounding out its hybrid cloud capabilities (OpenShift front and center) and growing its technology and go-to-market partner ecosystem (Microsoft, IBM, etc.). OpenShift seems most important to Red Hat’s long-term strategic positioning and growth opportunity. Not only is it the core of Red Hat’s hybrid cloud architecture, but it also serves as a foundation to which the portfolio (current and future) is tied and to which efforts to move up (applications) and to the left (Dev) are aligned. Last, good news, our customer survey (30) points to strong spending intentions and growing portfolio adoption. Maintain Outperform.”
According to TipRanks.com, Kidron is a top 100 analyst with an average return of 21.0% and a 66.2% success rate. Kidron covers the Consumer Goods sector, focusing on stocks such as Hewlett Packard Enterprise, Juniper Networks, and Pure Storage Inc.
Currently, the analyst consensus on Red Hat is Moderate Buy and the average price target is $169.36, representing a -1.1% downside.
In a report released yesterday, RBC Capital also maintained a Buy rating on the stock with a $180 price target.
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Red Hat’s market cap is currently $30.31B and has a P/E ratio of 122.26. The company has a Price to Book ratio of 20.61.
Based on the recent corporate insider activity of 92 insiders, corporate insider sentiment is negative on the stock.
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Red Hat, Inc. engages in the provision of open source software solutions. The firm operates its business through the following graphical segments: Americas (the United States, Canada, and Latin America); EMEA (Europe, Middle East, and Africa); and Asia Pacific. It offers Red Hat Enterprise Linux; Red Hat JBoss Middleware; Red Hat Enterprise Virtualization; and Red Hat Storage Server. The company was founded by Robert F. Young in March 1993 and is headquartered in Raleigh, NC.
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