Red Hat Inc. Lower On Analyst Comments Citing Slower Future Growth

Michael Turits, an analyst at Raymond James, downgraded Red Hat

to market-perform from outperform, because of downside FY14 growth risk. Turits expects Red Hat to report fourth quarter earnings in-line with analyst's expectations this Wednesday, March 27th. However, he still sees disappointment further down the road. He mainly cited the risk of Linux growth deceleration and incremental license sales to slow down due to pricing risks and more customers moving to the cloud format. RHT is currently down ~5 percent to $48.28.