Red Hat Reaction From Deutsche: 'Revs Felt A Bit Light'

Deutsche Bank's Karl Keirstead reiterated Red Hat Inc RHT's Buy rating with a $95.00 price target. The reiteration came after Red Hat reported Q1 earnings and guidance Wednesday.

"The business still seems healthy," stated Keirstead. The analyst most notably cited ST c/c billings growth improving to 19 percent and the number of large $1 million or more deals increasing by 50 percent. Mainly, however, Keirstead thought Red Hat was decelerating overall.

Related Link: Red Hat Sees Strongest Growth In Billings Since 2015

"Several metrics decelerated" including total growth, infrastructure growth and Americas growth:

• Total Growth: 18 percent, down from 21–22 percent throughout FY16
• Infrastructure Growth: 13 percent, down from 17–19 percent throughout FY16
• Americas Growth: 15 percent, down from 18–21 percent throughout FY16.

At the time of writing, Red Hat traded at $77.94, down 2.27 percent on the day.