Channel commentary regarding Red Hat's emerging products such as OpenStack and OpenShift was encouraging, Barclays noted.
"We believe Red Hat continues to benefit from its product diversification beyond the core infrastructure business, and we would expect this to positively impact results again in the second quarter," analysts at Barclays said.
Additionally, the firm believes that the continued interest in newer products, coupled with a stable core, and generally positive commentary regarding deal sizes bodes well for the company's upcoming quarter, according to the analyst note.
Red Hat is a provider of open source software solutions using a community-powered approach to develop and offer operating system, virtualization, middleware, storage and cloud technologies.
Red Hat is expected to report the first quarter earnings results of 2016 fiscal year after the market close on Thursday, June 18.
Shares of Red Hat are down 0.18% to $78.27 in afternoon trading Thursday.
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 a few notable 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 robust revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and solid stock price performance. We feel its 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."