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Red Hat climbs after Jefferies upgrade
NEW YORK — Shares of Red Hat Inc. climbed Thursday after a Jefferies analyst upgraded the software distributor, noting its 100 percent recurring revenue stream, which puts it in a good position to weather the 2009 "spending storm."
Battered by the recession, many companies are cutting back their technology budgets for the upcoming year.
Analyst Katherine Egbert upgraded Red Hat to "Buy" from "Hold." In addition to its recurring revenue, Red Hat also dominates its niche and an upcoming partnership with network equipment maker Cisco Systems Inc. "could provide an additional boost," she wrote in a note to investors.
Shares of the Raleigh, N.C., company climbed 47 cents, or 4.5 percent, to $10.93 Thursday. The stock has traded in the 52-week range of $7.50 and $24.84.
December 4, 2008 06:48 PM EST |
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