The Zacks Analyst Blog Highlights: Red Hat, Progress Software, Vodafone, Microsoft and Oracle

For Immediate Release

Chicago, IL – June 29, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Red Hat Inc. ( RHT - Snapshot Report ) , Progress Software Corp. ( PRGS - Snapshot Report ) , Vodafone Plc ( VOD - Analyst Report ) , Microsoft Corp. ( MSFT - Analyst Report ) and Oracle Corp. ( ORCL - Analyst Report ) .

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Thursday’s Analyst Blog:

Red Hat to Buy FuseSource

In a bid to strengthen its middleware product portfolio, Red Hat Inc. ( RHT - Snapshot Report ) is set to acquire FuseSource, a provider of open source integration and messaging, from Progress Software Corp. ( PRGS - Snapshot Report ) . The financial details of the deal were not disclosed, but Red Hat does not expect the acquisition to impact its fiscal 2013 outlook.

Headquartered in Bedford, Massachusetts, FuseSource’s clientele includes Fortune 500 companies like Vodafone Plc ( VOD - Analyst Report ) and Lynden to name a few. The product line of the company includes Apache ServiceMix, ActiveMQ, CXF and Camel in the middleware section.

Middleware is the software platform that facilitates the development, operation and integration of open-source applications and other software. Jboss, Red Hat’s Java-based middleware application, allows clients to develop and manage applications in a cost-effective manner.

Being open sourced, it can be easily integrated and customized according to client needs. Red Hat’s JBoss middleware offering is being used by companies in the financials, healthcare and networking sectors, among others.

Red Hat’s middleware products and services would be well complemented by the inclusion of FuseSource’s product line as it would speed up the delivery of its integration products and services, while increasing the flexibility of use for its clients.

We believe that Red Hat is emerging as a significant player in the middleware segment. Red Hat boasts an impressive product line up and expects to invest heavily on the development of innovative products. Red Hat’s expansion in the middleware segment makes sense because around 40% of the top 30 deals of $1 million or more in the last-reported quarter included a middleware component while just 3 were middleware-exclusive deals.

Additionally, the company’s offerings in the cloud computing market and server virtualization are expected to be incrementally beneficial in the long run.

However, we believe that increasing investment may hurt margins in the short term. Moreover, sluggish IT spending and significant foreign exchange volatility will keep the stock range bound.

At the same time, we don’t expect competitive pressures to alleviate given the deep pockets of rivals such as Microsoft Corp. ( MSFT - Analyst Report ) and Oracle Corp. ( ORCL - Analyst Report ) .

We maintain our Neutral recommendation over the long term (6-12 months). Currently, Red Hat has a Zacks #3 Rank, which implies a Hold rating in the short term.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact
Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

http://www.zacks.com