Deutsche Bank Upgrades Red Hat (RHT) to Buy

Deutsche Bank upgraded Red Hat (NYSE: RHT) from Hold to Buy with a price target of $90.00 (from $75.00). Analyst Karl Keirstead noted the company's cloud opportunity.

"While almost every peer is facing a tough IT budget environment, a looming headwind as IT workloads move to AWS/Azure and risks from cheap open source alternatives, Red Hat stands out to us as being on the right side of the big public cloud and open source trends. We are particularly impressed with the ramp of Red Hat’s $100+ million cloud subscription revenue stream, with AWS contributing almost half of this. Moreover, constant currency billings growth has been steady in the 15%-20% range and margins have been beating guidance. We see fewer reasons to stay on the sidelines and are upgrading our rating to a BUY and raising our PT to $90," said Keirstead.

For an analyst ratings summary and ratings history on Red Hat click here. For more ratings news on Red Hat click here.

Shares of Red Hat closed at $80.14 yesterday.

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