Citrix Systems' stock price leaped 8.23% to $129.04 as analysts at Wedbush, Evercore ISI and Morgan Stanley boosted their price targets following a 49% surge in subscription revenue by the software company, which hit $193.5 million in the fourth quarter.
Wedbush analyst Daniel Ives hiked his price target to $110 a share from $92 previously, writing that Citrix's subscription model, which is relatively new, "takes a step in the right direction."
But the Wedbush analyst, who has a neutral rating on Citrix's stock, also cautioned the shift "will take time."
ISI Evercore analyst Kirk Materne raised his price target on Citrix Systems to $120 a share, for an increase of $15, citing the big increase in subscription revenue and "solid" overall fourth-quarter numbers.
Morgan Stanley's Keith Weiss was the least bullish of the three analysts, placing an underweight rating on the software company's stock. The Morgan Stanley analyst said he was concerned about the company's 2020 outlook, noting, in particular, that it "implies uneven progress on cloud transition."
Still, the Morgan Stanley analyst raised his price target on Citrix Systems by $3 to $113 a share.
The bullish analyst notes come on the heels of Citrix's earnings release after the market closed on Wednesday.
The software designer reported fourth-quarter non-GAAP earnings of $1.71 a share, or 3% above the estimate of analysts surveyed by Zacks Investment Research.