Deutsche Bank Maintains a 'Hold' on Red Hat (RHT); Raising FY12 on Strong Momentum

Deutsche Bank maintains a 'Hold' on Red Hat (NYSE: RHT) price target raised from $45 to $48.

Deutsche analyst says, "RHT reported F2Q12 results beating consensus expectations across the board. Performance was driven by strong execution and demand with all top 25 deals due for renewal renewing at 150% of their original value, the highest ever upsell percentage since it is being tracked. Demand trends for its core offerings are broad based and remain healthy. We are encouraged by the strong interest in its virtualization and cloud offerings, but believe that monetization of those products could be a few quarters away." (Deutsche analyst raises FY12 EPS estimate from $0.77 to $0.80 and FY12 revs from $1.084bln to $1.125bln)

For more ratings news on Red Hat click here and for the rating history of Red Hat click here.

Shares of Red Hat closed at $40.29 yesterday.

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