BMO Capital Raises Price Target on Red Hat (RHT) Following 2Q
- Wall Street dips as telecoms slump; AmEx surges
- Microsoft (MSFT) Tops Q1 EPS by 8c
- AMD (AMD) Posts Q3 Operating EPS of 3c; Sees Q4 Revenue Down Sequentially
- AT&T (T) Said to Discuss Idea of Takeover in Time Warner (TWX) Meetings
- Alkermes plc (ALKS) Announces Third ALKS 5461 Phase 3 Met Primary Endpoint in MDD
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
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.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- BMO Capital Raises Price Target on Halliburton (HAL) Following 3Q Report
- Wedbush Cuts Price Target on Genuine Parts (GPC) to $95 Following 3Q
- Needham & Company Cuts Price Target on Syntel, Inc. (SYNT) Following Weak 3Q
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesBMO Capital, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!