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Red Hat (RHT) PT, Estimates Lifted at Needham & Company After Strong Q3

December 19, 2014 7:55 AM EST
Get Alerts RHT Hot Sheet
Price: $187.71 --0%

Rating Summary:
    16 Buy, 24 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 8 | Down: 2 | New: 35
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Needham & Company analyst Scott Zeller raised estimates and his price target on Buy-rated Red Hat (NYSE: RHT) to $75.00 (from $66.00) following strong Q3 results.

Zeller commented, "The Red Hat results for F3Q15(NovQ) were a beat on revenue, billings and EPS, and were better than anticipated given concerns about F/X impact going into the call. Management believes F/X was roughly -13m impact in the quarter, when comparing against last year’s F/X rates, yet results were still a “beat”. Billings of $540m were +19% as reported, and well above $509m consensus; more large deals combined with general strong datacenter and cloud project spending drove upside. We continue to believe RHT is well-positioned for CY15 as a beneficiary of increased Cloud project spending, with RHT benefiting as a player in the “hybrid-cloud” ecosystem."

The firm raised FY 2015 EPS from $1.56 to $1.58 and FY 2016 EPS from $1.83 to $1.87.

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 $61.50 yesterday.



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