UBS Maintains a 'Neutral' on Red Hat (RHT); Time to Play Defense

June 21, 2012 1:55 PM EDT Send to a Friend
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Price: $50.55 --0%

Rating Summary:
    22 Buy, 10 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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UBS maintains a 'Neutral' on Red Hat (NYSE: RHT) price target of $59.00 (from $57.00).

Analyst, Brent Thill, lowered FY13 EPS estimates from $1.20 to $1.19 and revenues from $1.36 to $1.335 billion. For FY14, EPS gets lowered from $1.46 to $1.42. Revenues got cut from $1.60 to $1.56 billion.

In his note though, Thill does seem to be sticking up for Red Hat, saying despite the Billing miss (vs. estimates) it was up 16% year-over-year. The stock is lower and Thill believes the Street over-exacerbated the Billling and discounted positive bookings commentary.

Thill concluded by saying, "However in near-term Europe/seasonal summer slowdown/few catalysts likely equals a range bound stock, and we are concerned by ‘canary in coalmine’ training/services slowdown +1% q/q vs. +11% Q1 2yr average."

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 $56.50 yesterday.




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