Latest news about Red Hat (NYSE: RHT):

Analyst firm Broadpoint AmTech is launching coverage of Red Hat and a target price of $27, according to StreetInsider.

Red Hat shares traded at $19.99 Friday afternoon.

"Red Hat is well-positioned to leverage three major themes in software: open source, cloud computing and virtualization,” Broadpoint said, according to StreetInsider. “Combine this with its predictable and profitable subscription revenue model and we view Red Hat as one of the more compelling investment opportunities in enterprise software. We see room for margin expansion, and revenue growth should easily outpace the overall enterprise software sector due to market share gains and a recurring revenue model."

Meanwhile, Verizon has picked Red Hat to be part of its

"We are ushering in a new era of computing, one that offers enterprises security, resiliency, and scalability on demand with a whole new level of flexibility and a low cost structure," Nancy Gofus, Verizon’s senior vice president of global product development, said in a statement. "Today’s smart enterprise knows that technology is a business enabler rather than the end goal."

, which is based in Raleigh, is the world’s largest developer and provider of Linux software services.