Red Fedora Fits Well Enough For Analyst To Give A Boost To Red Hat
Robert Stimson of analyst firm W.R. Hambrecht initiated coverage of Red Hat with a bang on Tuesday.
Despite facing threats from giant Oracle and the strange alliance between former enemies Microsoft and Novell that obviously targets Red Hat, the Hatters and their stock were labeled as a “buy” with a target stock price of $21.
Red Hat (NASDAQ: RHAT) climbed above $17 on the news. Red Hat also announced a major partnership for its new JBoss middleware subsidiary at a trade show in Europe.
And to make the picture seem even brighter for Red Hat on Tuesday, the honeymoon between Novell and Microsoft suddenly ended. After Microsoft Chief Executive Officer Steve Ballmer said last week that Linux infringed on Microsoft patents, Novell CEO Ron Hovsepian posted an open letter on the Novell website countering Ballmer’s claim.
If The Hat Fits …
In his report on Red Hat, Stimson came out strongly in favor of the open source movement as an alternative to Microsoft and Oracle.
“If the hat fits,” Stimson’s report began. It does as a buy – he wrote.