J.P. Morgan Maintains Underweight on Red Hat

J.P. Morgan is out with its report today on Red Hat RHT, maintaining Underweight. In a note to clients, J.P. Morgan writes, "We believe the current stock price implies a positive inflection point to free cash flow growth of about 25%, which we view as improbable. Our $32 price target implies a more reasonable inflection to 12% free cash flow growth. Moreover, we believe the incremental opportunity from new products such as virtualization and middleware will not materialize to the level most investors anticipate." At the time of posting, shares of RHT were trading pre-market at $45.50, up 4.07% from Wednesday's close.