I agree that if RHT misses or growth flattens, then this stock is going to take the fall. However, I believe that it has a long way to go yet before that happens, especially if the new year is a good year. We can certainly agree to disagree about this. If your belief is that this is a $40 stock, why don't you sell now and lock in your extra $6 and change?
You do realize that name calling is a sign of low intelligence, don't you? As for the valuation, it is certainly rich and I haven't said otherwise. Many pundits see 2011 as a agressive year for tech, and M+A activity in tech is expected to heat up quickly. Many companies such as IBM, CISCO, HP, etc are looking to grow via buying sprees (http://newenterprise.allthingsd.com/20101222/hp-networking-head-people-are-tired-of-paying-for-cisco/?mod=ATD_rss ) If you believe that to be the case, as I do, then why would you sell RHT, regardless of valuation, when they are the leader by a mile in open source, have alliances with most all the major players, no debt, plenty of cash, and would appear to be a target of one of the above mentioned companies looking to expand?
Here is the info I found for todays upgrades/downgrades. One upgrade by Oppenheimer, two holds, one by Barclay's and Deutsche Bank. Also note the range for the stock. If you are referencing price targets/brokers, the least you can do is provide the link, otherwise, it is just hot air.
Red Hat RHT Oppenheimer Outperform $45 » $55 Red Hat RHT Barclays Capital Equal Weight $36 » $48 Red Hat RHT Deutsche Bank Hold $40 » $48