Red Hat (NYSE:RHT) Driven by All Open Source Stack

The quality third quarter of Red Hat (NYSE:RHT) was the result of every open source stack performing strongly.

Barclays (NYSE:BCS) said, "Red Hat delivered a solid Q3, with upside to our revenue, billings and cash flow estimates, driven by momentum across the entire open source stack, including RHEL, JBoss, management and virtualization. We are raising our FY12 billings and cash flow estimates to $1.174 billion (+18%) and $366 million from $1.13 billion and $360 million to reflect sustaining pipeline builds. However, with the stock trading at 31x our C11 free cash flow estimate (or 25x C12 estimate), we believe results are largely discounted in share price."

Barclays maintains an "Equalweight" rating on Red Hat, which closed Wednesday at $46.70, down $1.18, or 2.46 percent. They raised their price target on Red Hat from $36 to $48.