UPDATE: Goldman Sachs Raises PT to $58 on Red Hat on Higher Forecasts and Valuation
Goldman Sachs reiterated its Neutral rating on Red Hat (NYSE: RHT) and raised its price target from $53 to $58.
Goldman Sachs commented, "FY13 guidance had puts and takes: revenue is expected to be $1.32- $1.33bn (due to slower training and services) versus $1.32-$1.34bn prior, while CFO was guided to the higher end of the prior $440-$460mn range. With more of RHT's services revenue being pushed to third parties, this line item will be an important metric to monitor in FY14 as the segment's comps should become more normalized. We continue to forecast billings growth of 15% in FY13 (ending Feb13) in line with consensus prior to the earnings call, while on the CFO front we are now expecting $459mn ($452mn prior)."
Red Hat closed at $57.54 on Monday.
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Tags: Goldman Sachs