Market Overview

A Stellar Q1 For Red Hat

A Stellar Q1 For Red Hat

Analysts have grown increasingly bullish on Red Hat Inc (NYSE: RHT) following a first-quarter earnings beat, continuing from an exceptional fiscal 2017 Q4.

BTIG analyst Joel Fishbein reiterated a Buy rating while raising its price target from $95 to $120.

“[Fiscal Q1] may prove to be a landmark quarter for Red Hat,” said Fishbein in a note.

The results suggest that Red Hat is becoming increasingly relevant to companies trying to modernize their information technology.

The company’s metrics in Q1 were “stellar” all around. Billings beat the Street’s estimated 12 percent year-over-year growth at 21 percent. The company reported 44 $1+ million deals, seven $5+ million deals, four $10+ million deals, and one $20+ million deal.

“We think RHT can maintain double-digit revenue, operating income and EPS growth over the next few years,” said Fishbein.

This outlook was attributed in part to increasing contributions from non-core solutions and other application development deals.

The analyst also raised his revenue and EPS estimates by $65 million and $0.06, above consensus.

The stock was up 10 percent on Wednesday’s open.

Related Links:

7 Biggest Price Target Changes For Wednesday

8 Stocks To Watch For June 21, 2017

Latest Ratings for RHT

Jul 2019SuspendsNot Rated
Jun 2019DowngradesOutperformMarket Perform
Nov 2018DowngradesOverweightSector Weight

View More Analyst Ratings for RHT
View the Latest Analyst Ratings

Posted-In: btig Joel FishbeinAnalyst Color Price Target Analyst Ratings Best of Benzinga


Related Articles (RHT)

View Comments and Join the Discussion!

Latest Ratings

BCOGoldman SachsInitiates Coverage On108.0
KSSGoldman SachsDowngrades48.0
TWGoldman SachsUpgrades53.0
IRaymond JamesUpgrades12.0
CGCBank of AmericaUpgrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

AVEO Reaches Enrollment Target in Pivotal Tivozanib Study

Total System (TSS) and Tesco Bank Renew Payments' Deal