UPDATE: Bank of America Reiterates Red Hat at Buy on Rebounded Growth

In a report published on Thursday, Bank of America analyst Kash Rangan reiterated a Buy rating and $61 price objective on Red Hat RHT.

In the report, Bank of America commented that, "We think RHT is capable of growing billings at a sustainable rate in mid teens, with multiple growth drivers validating our thesis (see our report for details). RHT is becoming a multi-product company benefiting from open source adoption and Cloud platform build-out. In our view, the stock could be poised to move higher from billings reacceleration. We reiterate Buy with PO of $61, based on 25x CY13e FCF, in line with comps (CRM, VMW)."

Red Hat closed Wednesday at $46.22.