Mizuho Securities analyst, Abhey Lamba, cut his price target but reiterated his Buy rating on shares of Red Hat (NYSE: RHT) after the company reported third quarter results that came in below expectations.

The company called out FX and slipped deals as driving revenue downside while an ongoing shift in payment terms impacted billings metrics. Management reduced its full-year revenue forecast with currency becoming a material headwind to its prior outlook.

The analyst stated "The numbers were clearly disappointing and metrics warrant close monitoring of fundamentals". However, he believes the set-up into FY18 is interesting as the updated outlook reduces the risk in estimates.

The new PT of $80 is down from $88.

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 $79.79 yesterday.