Red Hat Earns Upgrade

CIBC upgraded shares of Red Hat (RHT Quote), saying the Linux software distributor appears to be positioned well against its competition.

The firm lifted its rating on Red Hat to sector-outperformer from sector-performer and set a $26 price target on the stock. CIBC believes that recent competitive initiatives from Oracle (ORCL Quote), along with Microsoft (MSFT Quote) and Novell (NOVL Quote), haven't yet cut into Red Hat's business.

Additionally, the upcoming RHEL5 product cycle should accelerate adoption rates and give Red Hat the chance to appeal to its existing customers, CIBC said.

Shares of Red Hat closed Thursday at $20.96.