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Equities researchers at DA Davidson reduced their price objective on shares of Rackspace Hosting (NYSE:RAX) from $43.00 to $39.00 in a research report issued on Friday, Stock Ratings News reports. The firm currently has a “neutral” rating on the stock. DA Davidson’s price target points to a potential upside of 10.95% from the stock’s previous close.

The analysts wrote, “While we view the maturing of the OpenStack ecosystem as a positive for Rackspace, we also view the enablement of competing private clouds as a threat. Red Hat and Dell are both looking to drive revenue by offering service capabilities to their cloud customers, which is exactly what RAX is attempting to do with its OpenStack-based cloud. We believe Dell (with Red Hat’s help) is attempting to challenge the dominance of Amazon Web Services and IBM’s cloud efforts (and others), and believe the effort will certainly create more competition for Rackspace. We view the Dell/Red Hat announcement as a negative data point for Rackspace Hosting.”

RAX has been the subject of a number of other recent research reports. Analysts at Evercore Partners cut their price target on shares of Rackspace Hosting from $52.50 to $45.00 in a research note to investors on Wednesday, December 4th. Separately, analysts at Raymond James upgraded shares of Rackspace Hosting from a “market perform” rating to an “outperform” rating in a research note to investors on Monday, December 2nd. Finally, analysts at Needham & Company initiated coverage on shares of Rackspace Hosting in a research note to investors on Tuesday, November 26th. They set a “hold” rating on the stock. Two research analysts have rated the stock with a sell rating, eleven have given a hold rating and five have assigned a buy rating to the stock. The stock presently has an average rating of “Hold” and a consensus target price of $54.90.

Rackspace Hosting (NYSE:RAX) last announced its earnings results on Monday, November 11th. The company reported $0.11 earnings per share for the quarter, missing the analysts’ consensus estimate of $0.16 by $0.05. The company had revenue of $389.00 million for the quarter, compared to the consensus estimate of $387.50 million. During the same quarter last year, the company posted $0.19 earnings per share. Rackspace Hosting’s revenue was up 15.7% compared to the same quarter last year.

Rackspace Hosting, Inc, is the open cloud company. The Company offers a diverse portfolio of cloud computing services, including public, dedicated and private cloud, and hybrid hosting.

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