Red Hat Upgraded To Buy On Amazon Partnership

Red Hat Inc. was upgraded to buy from hold at Deutsche Bank on Tuesday, as the software company begins to benefit from its partnership with Amazon Web Services . Analyst Karl Keirstead raised his 12-month price target on the stock to $90 from $75, which implies a 12% increase from Monday's closing price. Keirstead pointed to the ramp of Red Hat's $100 million cloud subscription revenue stream, which AWS contributes almost half to, for the upgrade. He said he views Red Hat, which offers a combined cloud computing solution with Amazon targeted at the enterprise market, as one of the "winners" in the AWS success story. Shares of Red Hat climbed 1.1% in premarket trade, putting the stock on track to open around $81.06. Its shares have risen 2.4% over the last three months, compared with a 0.3% increase for the S&P 500.