Red Hat "neutral"

08/30/07 - UBS

NEW YORK, August 30 (newratings.com) - Analysts at UBS maintain their "neutral" rating on Red Hat Inc (RHT). The 12-month target price is set to $25.

In a research note published this morning, the analysts mention that Novell has posted its F3Q07 revenues at $243 million and its Linux platform product revenues at $21 million. The analysts expect Red Hat to post its August quarter revenues at $108 million, representing 27% y/y growth. Although Novell’s Linux business continues to gain traction, the business still remains lower than that of Red Hat, UBS adds.