NEW YORK (TheStreet) -- Red Hat (RHT) shares are down 1.13% to $60.98 in early market trading on Monday after the open source software solutions provider was downgraded to "market perform" from "outperform" by analysts at Wells Fargo today.
Red Hat's stock has outperformed the S&P 500 Index over the past 52 weeks by nearly double, gaining 29.93% compared to the index' 14.76% increase over the same period.
The firm made a valuation call on the company which last week announced a collaboration with fellow tech vendor Huawei to leverage Red Hat's OpenStack cloud orchestration software against Huawei's telecom company connections.
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"Carriers and telecommunications service providers are under pressure to modernize their network infrastructure to meet demands created by new service offerings and the explosive volume of data crossing the network," said senior VP Tim Yeaton of the deal.
TheStreet Ratings team rates RED HAT INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate RED HAT INC (RHT) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, increase in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."