UBS Maintains a 'Neutral' on Red Hat (RHT); Q4 Preview - Expect Upside to Billings

UBS maintains a 'Neutral' on Red Hat (NYSE: RHT) price target raised from $50 to $54.

UBS analyst said, "Billings should beat consensus as strong FQ3 bookings should show up in FQ4 deferred and checks suggest continued investment in datacenter modernization. Given Street pessimism in December and softness in FQ3 billings (very back-end loaded Q, FX headwind) we believe the Street got too conservative modelling FQ4 billings +15% y/y, our +18% could be conservative as well."

UBS sees Q3 EPS of $0.27 on revenues of $281.4 mln. (Consensus is $0.27 & $291.22 mln)

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 $53.13 yesterday.

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