Piper Jaffray Reiterates OW Rating, $57 PT On RHT

Red Hat, Inc.

reported Q4 results above consensus and also initiated FY12 guidance ahead of expectations, Piper Jaffray reports. “Strong demand for open source Cloud infrastructure drove billings growth of 31%, materially above consensus of 17%. Results correlated to our recent survey findings, which indicated resellers finished above plan and observed an improving pace of business,” Piper Jaffray writes. “We see ongoing catalysts, as inroads into the large Windows market have only just begun and RHEL6 adoption won't peak for 6 to 12 months. “Fundamentals remain very strong for RHT, in our view. Reiterate Overweight, $57 target.” Red Hat closed Wednesday at $39.97.