Positive news from Prudential sent Red Hat stock up 8 percent on Tuesday, and the climb continued in after-hours trading.

Prudential upgraded its recommendation on Red Hat (Nasdaq: RHAT) to “overweight”. The stock price climbed to $14.48, up $1.06. It
climbed another 7 cents after markets closed.

The same firm had downgraded Red Hat in June to “neutral”.

Merrill Lynch and First Albany have upgraded Red Hat to “buy” status over the past two months.

Analyst Brent Thill told CBS Marketwatch that he had raised his recommendation because “Red Hat remains the leader in the Linux market, which is among the fastest growing segments of the enterprise software market. We are still in the early innings of adoption by major corporations.”

Thill left his target price at $17.

In a statement quoted by Forbes, Prudential said concerns about the stock had kept the firm “on the sidelines” for the past six months were alleviated in part by the company’s current share price. Among the changes were the departure of red Hat’s chief financial officer and a restatement of financial results.

Red Hat: www.redhat.com