Collins Stewart Neutral On Red Hart After Earnings

Collins Stewart has a Neutral rating and a $44 price target on shares of Red Hat RHT after it reported earnings. In a note to clients, Collins Stewart writes, "RHT cited its own execution as well as a positive demand environment, which is evidenced by the fact that the channel business drove a significant portion of the upside. Others software companies should benefit from this as well, in addition to favorable impacts of currency translations on C2Q results and C3Q guidance which helps offset uncertainty presented by the political and macro environment. For RHT we see constant currency billings growth in the low 20% range, which is quite good but we believe largely in line with investor expectations based on the cash flow multiple in the same 20x range." Shares of RHT are up $1.84 in pre-market trading to $45.56, a gain of 4.2%.