Shares of RedHat Inc. are down 2% in premarket trading Tuesday after Raymond James analyst Michael Turits downgraded the stock to market perform from outperform following recent reseller checks, which he said were "mostly strong" but showed some concerning data points. "They did confirm company warnings that legacy middleware (~16% of F18 subscription revenue) is slowing as applications move to containers and cloud, lowering visibility into growth this year and putting added pressure on emerging technologies as well as Linux to maintain high levels of growth," Turits wrote. "Plus Red Hat faces risk to margins and top line with a shift in focus to mid-market this year and risk to billings and cash flow from ongoing duration and linearity issues." Shares of the company, which provides open-source software to enterprise customers, are up 95% over the past 12 months, while the S&P 500 has gained 13%.