NEW YORK (TheStreet) -- Shares of VMware (VMW) - Get Report  were climbing on heavy trading volume early-afternoon Thursday as Citi raised its stock rating to "buy" from "neutral" after the cloud infrastructure solutions provider late yesterday reported better-than-expected results for the 2016 third quarter. 

The firm also hiked its price target to $95 from $79 on shares of the Palo Alto, CA-based company, according to TheFly

After yesterday's closing bell, VMware reported adjusted earnings of $1.14 per diluted share, above Wall Street's estimated $1.10 per share. Revenue came in at $1.78 billion which beat analysts' projected $1.76 billion.

Citi analysts believe VMware's "strong" trends in the third quarter look sustainable and position the stock for further multiple expansion as growth stabilizes. 

Additionally, Jefferies upped its price target to $91 from $89 and maintained its "buy" rating on VMware stock.

The firm said that VMware saw license billings increase 13% year-over-year alongside growth in its other business units. 

Nomura noted that the billings growth was above analysts' expectations for a 10% increase year-over-year. 

The firm raised its price target to $68 from $60 and reiterated its "neutral" rating on the stock.

RBC Capital Markets analysts said VMware's results were "nicely ahead across the board" and upped its price target to $90 from $88 while keeping an "outperform" rating on shares of VMware. 

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RBC noted that the resulted were supported by large customers that continue to renew/expand core offerings and consider some of VMware's newer products. 

VMware remains "forward thinking" in the ever-changing hybrid cloud market, particularly as it ventures into cloud partnerships with IBM (IBM) and's (AMZN) Amazon Web Services, the firm added. 

More than 4.71 million of the VMware's shares changed hands so far today vs. its average 30-day volume of 1.69 million shares per day.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

The team rates VMware as a Buy with a ratings score of B-. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. Although no company is perfect, currently the team does not see any significant weaknesses which are likely to detract from the generally positive outlook.

You can view the full analysis from the report here: VMW

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