Morgan Stanley Sees Red Hat Q4 Results as Strong Where it Matters

In a report published Friday, Morgan Stanley analyst Keith Weiss reiterated an Overweight rating and $69.00 price target on

. In the report, Morgan Stanley noted, “Red Hat billings growth accelerated to 24% YoY in Q4, as stronger cross selling of emerging technologies drove 40% YoY growth in deals >$1M. While bears will point to 13% FY14 bookings growth and a guide looking for 14% growth in FY15 revenues, we believe this reflects a weak 1H14 and likely proves conservative. With traction building across the broader portfolio and FCF forecasts moving up, we remain buyers of RHT.” Red Hat closed on Thursday at $56.13.