UPDATE: Deutsche Bank Reiterates Hold Rating, Raises PT on Red Hat

In a report published Friday, Deutsche Bank reiterated its Hold rating on Red Hat

, and raised its price target from $48.00 to $52.00. Deutsche Bank noted, “Outperformance on services revenues helps topline/billings beat. RHT reported F3Q13 numbers with $343.6m in revenues above our $338m in ests ($4m beat on services from training revenues), and EPS of $0.29, in-line with ests. Billings of $379m (+20% y/y constant currency) came ABOVE expectations of $374m (helped by revenue beat). Our analysis shows FX adjusted Billings (ex-services) came at 20% y/y growth, in-line with 21% last qtr. We view the overall slowdown in billings momentum (from mid-high 20s growth in F2012) as a result of company's de-emphasis of services revenues, and likely lower monetization of new products, and expect these headwinds to persist into F2014. We maintain our HOLD and raise target to $52 (from $48).” Red Hat closed on Thursday at $52.61.