NEW YORK (TheStreet) -- Shares of Red Hat (RHT) stock closed down 1.05% to $71.42 on Thursday after Morgan Stanley reduced its rating on the stock to "equal weight" from "overweight," the Fly reports.

The firm has an $80 price target on shares of the Raleigh, NC-based software solutions company.

Morgan Stanley said mid-teens billings growth with flat to down margins limits upside to free-cash-flow estimates, the Fly noted.

The firm added that valuation is fair to its price target.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.

The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, growth in earnings per share and increase in net income.

The team believes its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: RHT