BMO Capital Raises Price Target on Red Hat (RHT) Following 2Q
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BMO Capital reiterated an Outperform rating on Red Hat (NYSE: RHT), and raised the price target to $89.00 (from $85.00), following the company's 2Q earnings report. RHT delivered good billings at $573 million vs. estimates of $556 million. Total revenues were $600 million vs. the consensus of $590 million.
Analyst Keith Bachman commented, "Our view on RHT shares is that in line or better is enough to send the shares higher at current valuations. More specifically, RHT trades at 14x-15x FY2018 FCF, similar to MSFT, and at a modest premium to ORCL. And yet, we project top-line growth of ~14% in FY2018, with our point being that we think a lot of skepticism exists for RHT shares. Given our higher estimates, we are raising our target price to $89 from $85, and we retain our Outperform rating."
Shares of Red Hat closed at $77.04 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesBMO Capital, Earnings
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