Shares of Red Hat were gaining 11.1% to $68.30 in pre-market trading.
The analyst firm raised its 2015 EPS estimates for the software company to $1.57 a share from $1.55 a share. Credit Suisse also increased its 2016 EPS estimates for Red Hat to $1.95 from $1.84 a share, and its 2017 EPS estimates to $2.31 from $2.14 a share.
"Despite significant FX headwinds, Red Hat reported strong November quarter results with revenue, billings, and EPS above consensus expectations, driven by large deals , strong demand for Red Hat Linux, and cross selling of emerging technologies," Credit Suisse analysts wrote. "Specifically, the company closed three deals greater than $10 million and 12 deals more than $5 million versus four and none in the year ago quarter, respectively."
Respectively, TheStreet Ratings team rates RED HAT INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate RED HAT INC (RHT) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, increase in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."
You can view the full analysis from the report here: RHT Ratings Report