BTIG analyst Joel Fishbein kept his Neutral rating and $176 price target on Red Hat (RHT) after its Q3 results, saying that its subscription revenue miss was impacted by currency headwinds. The analyst is positive on the company's "strong billings", which he sees as a better leading indicator of business, adding that Red Hat looks to be "regaining its footing as it attempts to get back on track after working through some kinks in the subscription model." Fishbein further notes that this latest quarter "does nothing" to alter his view that the Red Hat - IBM (IBM) deal is likely to close, and that Red Hat shares will approach the $190 takeout price.

IBM (IBM) is nearing an acquisition of HashiCorp (HCP) and deal could come together in the coming days, Lauren Thomas and Laura Cooper of Wall Street Journal report, citing people familiar with the matter. A deal for HashiCorp would likely command a premium above where the stock is currently trading, the Journal says. Shares of HashiCorp jumped 7% to $26.37 following the report before halting for volatility. IBM is down 66c to $181.28 in afternoon trade. Reference Link

Jefferies analyst Brent Thill lowered the firm's price target on IBM to $210 from $215 and keeps a Hold rating on the shares. IBM remains a "show me story" as the company looks to reposition itself around a software-led strategy, the analyst tells investors in a research note. The firm likes the company's initiatives to bolster its software growth and profitability profile, but thinks better execution on the new go-to-market strategy and further investments in the organic engine are necessary to drive long-term software growth higher. Until signs of a re-energized software business are seen, IBM's risk/reward "seems balanced," Jefferies contends.

UBS raised the firm's price target on IBM to $130 from $125 and keeps a Sell rating on the shares. The firm updated its model, noting that a gain on the sale of Weather Channel assets lifts its Q1 EPS, but it lowered its view on the rest of the year.