After Barclays and RBC Capital gave Red Hat (NYSE: RHT) a Buy rating last month, the company received another Buy, this time from Oppenheimer. Analyst Ittai Kidron maintained a Buy rating on Red Hat today and set a price target of $165. The company’s shares closed yesterday at $143.16.
Kidron wrote:
“Red Hat delivered a mixed FY2Q19, with strong commentary on growth businesses (OpenShift, Ansible) offset by FX and middleware headwinds and lower RHEL renewals. We remain confident in Red Hat’s competitive positioning, but acknowledge it may take a couple of quarters to work through these issues and demonstrate more consistent execution/growth. To accomplish this, management is planning a concerted sales effort to drive higher spend from $250K-$1M customers. a refresh of RHEL renewals, should help growth rebound in FY20. Overall, we believe Red Hat remains well-positioned to gain share in hybrid cloud due to its comprehensive solution stack (OpenShift, Ansible, JBoss, OpenStack) that is increasingly bundled. Revising estimates to reflect results/guidance. Maintain Outperform and lowering our PT to $165 (from $175).”
According to TipRanks.com, Kidron is a top 100 analyst with an average return of 25.7% and a 65.8% success rate. Kidron covers the Consumer Goods sector, focusing on stocks such as Juniper Networks, Arista Networks, and F5 Networks.
Red Hat has an analyst consensus of Moderate Buy, with a price target consensus of $167.63, implying a 17.1% upside from current levels. In a report issued on September 7, Barclays also maintained a Buy rating on the stock with a $166 price target.
.
See today’s analyst top recommended stocks >>
Based on Red Hat’s latest earnings release for the quarter ending May 31, the company reported a quarterly net profit of $113 million. In comparison, last year the company had a net profit of $96.86 million.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
Red Hat, Inc. engages in the provision of open source software solutions. The firm operates its business through the following segments: Americas, EMEA, Asia Pacific, and Corporate. The company was founded by Robert F. Young in March 1993 and is headquartered in Raleigh, NC.
