Deutsche Bank Maintains Hold on Red Hat

Deutsche Bank is out with its report today on Red Hat RHT, maintaining Hold. In a note to clients, Deutsche Bank writes, "RHT reported strong F1Q12 results with revenues, EPS, cash flow and billings all exceeding expectations. Performance was driven by strong execution and a strong demand with all top 25 deals due for renewal renewing at 130% of their original value. The company raised the Rev/EPS guidance for the next quarter and the year, but maintained the previous cash flow guidance. We remain positive on the momentum in its core offerings, but would like to see further evidence of it making headway in the virtualization/cloud space. Maintain HOLD and PT of $48." At the time of posting, shares of RHT were trading pre-market at $46.00, up 5.22% from Wednesday's close.