As previously reported, Raymond James downgraded Red Hat to Market Perform from Outperform. Analyst Michael Turits changed his view ahead of Red Hat's Q1 report on Thursday saying shares are at peak valuation and the company is facing a difficult NTM growth outlook. Turits' Q1 reseller checks were mostly strong, but confirm company warnings that legacy middleware is slowing and there were some indications of further competitive pricing pressure. The analyst also sees other headwinds from the shift in focus to mid-market, ongoing extensions of larger deals, and reduced foreign exchange revenue tailwinds.