Red Hat Receives a Buy from Drexel Hamilton

By George MacDonald

Drexel Hamilton analyst Brian White maintained a Buy rating on Red Hat (NYSE: RHT) today and set a price target of $98. The company’s shares opened today at $74.55.

White observed, “We believe Red Hat will beat our 4Q:FY16 revenue estimate of $538 million (Street is at $537.5 million) and our EPS projection of $0.47 (Street is also at $0.47). Our 4Q:FY16 revenue estimate represents 2.7% QoQ growth and slightly above the five-year average growth rate of just over 2%.”

Currently, the analyst consensus on Red Hat is Strong Buy and the average price target is $85.50, representing a 14.7% upside. In a report issued on March 14, Deutsche Bank also maintained a Buy rating on the stock with a $95 price target.

The company has a one year high of $84.44 and a one year low of $59.59. Currently, Red Hat has an average volume of 1.77M.

Unlike Drexel Hamilton`s latest rating, based on the recent corporate insider activity of 82 insiders, corporate insider sentiment is negative on the stock. Most recently, in January 2016, William S. Kaiser, a a Director at RHT sold 18,972 shares for a total of $1,520,606.

According to TipRanks.com, White is a 5-star analyst with an average return of 7.9% and a 54.4% success rate. White covers the Technology sector, focusing on stocks such as Qlik Technologies, Juniper Networks, and Amphenol Corp.

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.