BMO Capital analyst Keith Bachman lowered his price target on Red Hat to $158 and kept his Market Perform rating after its Q2 earnings miss, adding that the "solid" operating margins and "good" free cash flow in the quarter will likely be overshadowed by the worse than expected infrastructure growth rate of 8%. Despite the management's confidence in expected improved growth coming from a stronger renewal base, the analyst says his neutral stance is justified by the timing and uncertainty surrounding those expectations. Longer term, Bachman is still positive on the opportunity for Red Hat to be a "strong participant in building the hybrid cloud".