Skip to main content

Market Overview

Analysts Bullish On Red Hat Ahead Of Q4 Earnings

Analysts Bullish On Red Hat Ahead Of Q4 Earnings

Red Hat Inc (NYSE: RHT) is scheduled to report fourth-quarter results after the close Monday, March 26, and multiple Wall Street analysts are expecting the open source solution provider to deliver strong earnings.

The Analysts

Stifel's Brad Reback maintains a Buy rating on Red Hat's stock with an unchanged $150 price target.

Morgan Stanley's Keith Weiss maintains an Equal-weight rating on Red Hat with an unchanged $130 price target.

Stifel: Solid Close To Fiscal 2018

Red Hat is expected to report upside to an 81-cents-per-share earnings estimate and $762.3-million revenue estimate on the back of ongoing demand for hybrid cloud products and services, Reback said in a note.

Stifel projects billings of $1.109 billion, a 12.4-percent jump from a year ago and below the consensus figure of 13.6 percent. 

Red Hat's Q4 report should confirm the company still manages to "elevate its strategic positioning" and can sustain a low-to-mid-teens growth rate, 30-percent emerging product growth and billings growth in the mid-teens, Reback said. 

Morgan Stanley: What To Watch For 

Red Hat's earnings should come in better than expected, but investors should be looking for three key data points, Weiss said in a note. They are:

  • Durable mid-teens growth in the Enterprise Linux business.
  • Acceleration of growth in the emerging business segment aided by growing demand for the OpenShift and OpenStack platforms.
  • Rising margins that push cash flow growth above the 20-percent mark.

Price Action

Shares of Red Hat are sitting around the $150 area, up about $25 per share since the start of the year. The stock closed Friday down 2.09 percent at $147.90. 

Related Links:

Mizuho: Red Hat Valuation Leaves Little Room For Upside

Nomura: Red Hat Could Have $66 Billion Total Addressable Market By 2020

Latest Ratings for RHT

Jul 2019BairdSuspendsNot Rated
Jun 2019William BlairDowngradesOutperformMarket Perform
Nov 2018KeyBancDowngradesOverweightSector Weight

View More Analyst Ratings for RHT
View the Latest Analyst Ratings


Related Articles (RHT)

View Comments and Join the Discussion!

Posted-In: Brad Reback cloudAnalyst Color Price Target Previews Reiteration Analyst Ratings Trading Ideas Best of Benzinga

Latest Ratings

APENLake StreetInitiates Coverage On12.0
PATHMacquarieInitiates Coverage On69.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
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.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
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