Stifel Nicolaus Reiterates Buy on Red Hat

Stifel Nicolaus is out with its report today on Red Hat RHT, reiterating Buy. In a note to clients, Stifel Nicolaus writes, "We view RHT attractively given the recent weakness in shares (down 3.8% versus Nasdaq up 1.3% YTD). We reiterate our Buy rating and $49 12-month target price based on 7.0x our FY13 revenue estimate of $1222mn, which is a premium to the peer group at 5.2x." At the time of posting, shares of RHT were trading pre-market at $45.58, up 4.25% from Wednesday's close.