RBC Capital Reiterates a Buy Rating on Red Hat

By George MacDonald

In a report released today, Matthew Hedberg from RBC Capital reiterated a Buy rating on Red Hat (NYSE: RHT), with a price target of $90. The company’s shares closed yesterday at $80.52, close to its 52-week high of $83.

Red Hat has an analyst consensus of Moderate Buy, with an average price target of $83.91.

Based on Red Hat`s latest earnings report from August 31, the company posted quarterly revenue of $504.1M and quarterly net profit of $51.4M. In comparison, last year the company earned revenue of $455.9M and had a net profit of $47.93M.

Unlike RBC Capital`s latest rating, based on the recent corporate insider activity of 89 insiders, corporate insider sentiment is negative on the stock. Last month, Michael Cunningham, a the EVP & GC of RHT sold 5,000 shares for a total of $403,900.

According to TipRanks.com, Hedberg is a 4-star analyst with an average return of 8.0% and a 62.5% success rate. Hedberg covers the technology sector, focusing on stocks such as Verint Systems Inc., Informatica Corp., and Qlik Technologies.

Red Hat Inc is a provider of open source software solutions, using a community-powered approach to develop and offer reliable and high-performing operating system, middleware, virtualization, storage and cloud technologies.