Mizuho Securities Reiterates Buy on Red Hat (RHT) Following 2Q Report
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Mizuho Securities reiterated a Buy rating and $88.00 price target on Red Hat (NYSE: RHT) following the company's 2Q earnings report. RHT reported total revenue of $600mm vs. consensus of $590mm with upside coming in from the subscription line as the company benefited from FX and customer audits.
Analyst Abhey Lamba commented, "Red Hat reported F2Q17 results that came in broadly above expectations but revenue upside was largely driven by FX and customer audits. That said, we point out a few items beyond headline metrics that warrant monitoring. Management raised its FY guidance which came in above consensus. We continue to favor the stock at current levels and see upside to estimates on potentially conservative guidance. We further note that the stock tends to outperform in seasonally strong F4Q. Reiterate Buy rating and $88 PT."
Shares of Red Hat closed at $77.04 yesterday.
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