Out of the Gate: Amdocs surges on strong 2Q earnings

Shares of Amdocs Ltd. surged Friday morning as analysts raised their forecasts for the company after it reported a second-quarter profit that beat Wall Street estimates.

Shares of Amdocs, which makes software for the telecommunications sector, jumped $3.60, or 12.8 percent, to $31.79 in morning trading. The stock has ranged from $27.18 to $40.36 over the past year.

Cantor Fitzgerald analyst Edward Jackson reiterated his "Buy" rating in a client note after Amdocs reported it earned 58 cents per share, beating analyst estimates by a penny, according to a Thomson Financial analyst poll. Jackson was upbeat on the results, raising his 12-month price target $2 to $45.

JPMorgan analyst Sterling Auty said he anticipated greater deal activity for the Chesterfield, Mo.-based company through the rest of the year, and raised his fiscal 2008 profit forecast to $1.81 per share from $1.79.

"Amdocs and Websense remain our two favored names, as they both are showing improving fundamentals despite a tough macro environment," Auty said.

Meanwhile, Citigroup analyst Ashwin Shirvaikar said the company had a "solid quarter," adding, "buy (Amdocs) now." He left his estimates unchanged.