Red Hat (RHT): Raising PT After A Breakout Quarter - Drexel Hamilton

September 22, 2016 8:17 AM EDT
Get Alerts RHT Hot Sheet
Price: $77.03 --0%

Rating Summary:
    26 Buy, 10 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
Trade RHT Now!
Join SI Premium – FREE

Get access to the best calls on Wall Street with's Ratings Insider Elite. Get your Free Trial here.

Drexel Hamilton analyst, Brian White, reiterated his Buy rating on shares of Red Hat (NYSE: RHT) and raised his price target to $110.00 (from $105.00) after determining that yesterday's report represents a breakout for the stock.

Despite a healthy performance this year, Red Hat's shares are down 7% YTD (based on last night's closing price vs. S&P up 6%) but the analyst believes the stock has an opportunity to play catch up given last night's strong results. Red Hat reported 2Q:FY17 sales of $599.8 million (up 19% YoY, up 18 % in constant currency), which handily beat street consensus of $589.97 million. Pro forma EPS of $0.55 exceeded Street consensus of $0.54.

Red Hat reported 2Q:FY17 subscription revenue of $531.2 million (up 20% YoY, 19% in CC) and the company won a record number of deals for a 2Q (55, up over 60% YoY) over $1 million. Also, deferred revenue came in at $1.681 billion (up 19% YoY, 17% in CC).

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 $77.04 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst EPS Change, Analyst PT Change, Earnings

Related Entities

Standard & Poor's, Drexel Hamilton, Brian White

Add Your Comment