Published at LXer:

Software supplier Red Hat is racking up growth figures that much of techdom might envy. Sales rose 32%, to $157 million, in the quarter ended May 31, and profits climbed a respectable 7%. So why is Wall Street so bearish on the stock? A day after Red Hat reported results, Oppenheimer & Co. downgraded the shares, citing few opportunities for growth. Three other investment banks had lowered their Red Hat ratings in the previous nine months, and the company's shares, which on Aug. 15 dipped 22¢, to 22.75, have been parked between 21 and 23 for a year. "There's a concern that our growth rate will slow," Red Hat Chief Executive Officer Jim Whitehurst says. "We've been in that funk the last couple of years."

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