UBS Downgrades Red Hat (RHT) to 'Neutral' After Positive Run

UBS downgraded Red Hat (NYSE: RHT) from Buy to Neutral with a price target raised from $50 to $54.

UBS analyst says, "Our positive view on RHT’s fundamentals is unchanged. Our valuation-based downgrade reflects the stock reaching our prior $50 PT. We are raising our PT to $54 to reflect our belief in the near-term business momentum and strong performance in prior periods of slowing IT spend, but to our new PT there is insufficient upside to maintain a Buy rating. We will look for opportunities to revisit our view, with RHT historically exhibiting CQ1 negative seasonality."

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 $50.58 yesterday.

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