WRAL Tech Wire

Red Hat Stock Is a ‘Buy,’ Analyst Says

Red Hat (NYSE: RHT) is a “buy,” according to analyst firm Piper Jaffray, which initiated coverage Monday of the Linux and JBoss software developer.

Red Hat shares closed at $19.52 on Monday.

"Red Hat is the global leader in open-source software, and we expect the company to grow revenue and earnings at a very healthy 20 to 25 percent rate as global adoption of open-source technologies expands,” Piper Jaffray said in a report cited by StreetInsider.

Red Hat’s JBoss division is also showing strength, Piper Jaffray added.