Red Hat's Shares Fall as Piper Sees Billing Slowdown

Wednesday, 23 May 2012 04:48 PM

 

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
Shares of Red Hat Inc., the largest seller of the open-source Linux operating system, fell Wednesday after an analyst at Piper Jaffray & Co. projected a slowdown in billings growth.

The Raleigh, North Carolina-based company declined 3.4 percent to $54.43 at the close in New York, for the third-worst performance in the Standard & Poor’s 500 Index. The stock has climbed 32 percent this year.

Billings, a predictor of revenue, “could lack the explosiveness seen in the fourth quarter,” said Mark Murphy, an analyst at Piper Jaffray in San Francisco, in a note Wednesday. “The macroeconomic climate has degraded since Red Hat issued guidance in March.”

As Red Hat works to expand its offerings for customers who want to access data over the Internet using so-called cloud computing, the company is also dealing with the impact of fluctuations in foreign currencies and the European debt crisis, Murphy said. He has an overweight rating on shares, the equivalent of a buy recommendation, and a target price of $63.

“While billings growth should decelerate this year, we continue to believe Red Hat is favorably positioned into the secular trends of cloud computing, open source, virtualization and unstructured data, and should continue gaining market share,” Murphy said.

© Copyright 2014 Bloomberg News. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 

You May Also Like
Around the Web

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved