The firm said it initiated coverage on the open source software solutions provider as it believes the company is a market leader and will continue to gain market share.
Shares of Red Hat are up by 0.29% to $69.09 in pre-market trading this morning.
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"In our view, Red Hat's standing as a leading provider of open source software solutions positions the company well for the build out of next generation data centers and new opportunities across the cloud computing landscape with a focus on the open hybrid cloud," Cantor Fitzgerald said.
Separately, 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 some important positives, 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 revenue growth, good cash flow from operations, solid stock price performance, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."