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

September 22, 2016 8:17 AM EDT
Get Alerts RHT Hot Sheet
Price: $74.20 --0%

Rating Summary:
    27 Buy, 10 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 18 | Down: 12 | New: 9
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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.

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