Reaffirmed: Red Hat (NYSE:RHT) “Outperform” Rating Restated by RBC Capital Mkts; $90.0 Target in Place

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Red Hat (NYSE:RHT) Rating Reaffirmed

Professional analysts at RBC Capital Mkts now has a $90.0 Estimated Target Price on Red Hat (NYSE:RHT). RBC Capital Mkts and their recent Estimated Target Price could mean a potential upside of 11.77% from the company’s last price. The rating has been revealed to investors in an analyst note on 8 December.

From a total of 29 analysts covering Red Hat (NYSE:RHT) stock, 24 rate it a ”Buy”, 1 a “Sell”, and 6 a ”Hold”. This means that 77% of the ratings are positive. The highest target price is $92 while the lowest target price is $72. The mean of all analyst targets is $84.79 with a 6.79% above today’s ($81) stock price. Red Hat was the topic of 11 analyst reports since August 25, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets maintained shares on December 8 with “Outperform” rating. JP Morgan maintained shares with “Overweight” rating and $89 target share price in a report from a September 22. Cowen & Co downgraded RHT stock in a recent report from October 22 to “Market Perform” rating. BTIG Research initiated the rating on September 10. BTIG Research has a “Buy” rating and a $85 price target on shares. Finally, Credit Suisse maintained the stock with “Buy” rating in a report issued on a September 22.

The stock increased 0.60% or $0.48 during the last trading session, striking $81. Approximately shares of stock traded hands. Red Hat Inc (NYSE:RHT) has risen 8.36% since May 6, 2015 and is uptrending. It has outperformed by 9.16% the S&P500.

Analysts await Red Hat Inc (NYSE:RHT) to reports earnings on December, 17. They expect $0.31 earnings per share, up 3.33% or $0.01 from last year’s $0.3 per share. RHT’s profit will be $56.34M for 65.32 P/E if the $0.31 EPS becomes reality. After $0.34 actual earnings per share reported by Red Hat Inc for the previous quarter, Wall Street now forecasts -8.82% negative EPS growth.

The overall sentiment of institutions has increased to 1.17 in Q2 2015. Its up 0.03, from 1.14 in 2015Q2. The ratio is positive, as 43 institutions have sold all the shares of Red Hat Inc that they owned while 148 funds have taken shares off the table. 66 funds have purchased shares for the first time while 158 added to their positions. These institutions now hold 152.76 million shares or 9.93% less than the 169.60 million shares they owned in 2015Q2.

The Fund Gagnon Advisors Llc currently is holding shares equating to 9.15% of its total portfolio in Red Hat Inc representing a total of 156,477 shares. Another fund,Gagnon Securities Llc, is holding a total of 197,411 shares equating to 6.94% of their holdings. Additionally, Contour Asset Management Llc has a 1.06 million share stake in Red Hat Inc which represents 4.38% of their total portfolio. The Fund, Df Dent & Co Inc, based out of Maryland, has also built up a stake in the stock, which represents a total of 3.95% of their total portfolio. Finally Tremblant Capital Group, a fund which is based in the state of New York reported a total holdings of 759,826 shares.

Red Hat, Inc. is a provider of open source software solutions, using a community-powered approach to develop and offer operating system, virtualization, middleware, storage and cloud technologies. The company has a market cap of $14.72 billion. The Firm employs an open source development model. It has 77.56 P/E ratio. The open source development model allows it to use the collective input, resources and knowledge of a global community of contributors who can collaborate to develop, maintain and enhance software because the human-readable source code for that software is publicly available and licenses permit modification.

According to Zacks Investment Research, “Red Hat Inc. is a leading developer and provider of open source software and services, including the Red Hat Linux operating system. Unlike proprietary software, open source software has publicly available source code and can be copied, modified and distributed with minimal restrictions. The web site, REDHAT.COM, is a leading online source of information and news about open source software and one of the largest online communities of open source software users and developers.” Get a free copy of the Zacks research report on Red Hat Inc (RHT).

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