Red Hat announces quarterly earnings today after the markets close. Wall Street analysts project Red Hat will announce earnings of a penny per share.

Red Hat (Nasdaq: RHAT) stock closed Monday at $8.08. Earnings will be announced after the markets close today.

A new analyst rating lists Red Hat with an “underweight” rating and a target of $4 a share. The rating came from Soundview, which said “RHAT’s rich valuation reflects an overly optimistic view of the (company’s) ability to capitalize on the Linux opportunity.” The firm also expressed concern about the ongoing lawsuit between SCO Group and IBM over Unix code. The suit “may dampen the growth rate of Linux as customers contemplate their legal liability around Linux.”

Red Hat: