UPDATE: Wells Fargo Initiaties Red Hat at Outperform

Wells Fargo is out with its report today on Red Hat (NYSE: RHT), initiating RHT at Outperform.

In its report, Wells Fargo writes, "We are initiating coverage of RedHat with an Outperform rating on the shares and a $45-50 valuation range. RedHat has evolved over the years from providing OS software into a broad-based provider infrastructure stack solutions. In our view, RHT is well positioned to benefit from secular trends in open source TCO projects, virtualization and cloud management."

At the time of posting, shares of RHT were trading at $39.14, up 3.38% from Tuesday's close.