Needham & Company Reiterated Buy Rating on Red Hat (RHT)

Following yesterday's results and guidance, Needham & Company reiterated a Buy rating on Red Hat (NYSE: RHT) and a price target of $63.00.

"Importantly, the cash flow guidance of $440-460m for FY13 was unchanged and is now biased toward the upper end of the range," said analyst Scott Zeller. "The strong cash flow outlook underscores the strength of demand for RHT Linux license subscriptions as well as the ability to collect."

"Other positive points for demand include the +120% (of original size) renewal rate for the Top 25 deals in the quarter, and the 27 deals of $1m+ in size (5 of the 27 were pure middleware deals)," he said.

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 $57.54 yesterday.

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