Red Hat Upgraded To Buy On Amazon Partnership | Fox Business

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.