UPDATE: Cowen Remains Bullish on Red Hat (RHT) Following 1Q16 Results

Cowen reiterates an Outperform rating and $85.00 price target on Red Hat (NYSE: RHT) following 1Q16 results. F1Q revenues of $481m came in above consensus estimates of $473m. EPS of $0.44 exceeded the Street's $0.41 estimate. RHT raised EPS guidance to $1.81- $1.84 (from $1.79-$1.82).

Analyst Gregg Moskowitz commented, "We continue to believe RHT's core business is very healthy and will see a boost from the RHEL 7 product cycle, in part driven by early interest in containers. Middleware also continues to impress, and the co.'s public cloud momentum is clearly rising. Finally, our checks indicate that OpenStack activity is picking up, and RHT’s positioning within the OpenStack ecosystem provides investors with potential for significant medium-to-longer-term upside, in our view."

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 $78.49 yesterday.

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