Rackspace Hosting Now Covered by Analysts at Credit Suisse (RAX)
Analysts at Credit Suisse started coverage on shares of Rackspace Hosting (NYSE:RAX) in a research report issued to clients and investors on Friday, TheFlyOnTheWall.com reports. The firm set an “outperform” rating and a $49.00 price target on the stock. Credit Suisse’s price objective indicates a potential upside of 24.02% from the company’s current price.
The analysts wrote, “We are initiating coverage of Rackspace with an Outperform rating and a target price of $49. After two years of decelerating growth, we believe that revenue is poised to reaccelerate in 2014 in a predictable manner, driven by improvements in products and sales execution. Furthermore, Rackspace is well positioned to benefit from secular growth trends in cloud computing, as we expect the next phase of cloud market growth to be led by enterprise adoption.”
Rackspace Hosting (NYSE:RAX) opened at 39.51 on Friday. Rackspace Hosting has a 1-year low of $32.62 and a 1-year high of $75.37. The stock’s 50-day moving average is $37.32 and its 200-day moving average is $43.79. The company has a market cap of $5.524 billion and a price-to-earnings ratio of 56.27.
A number of other analysts have also recently weighed in on RAX. Analysts at RBC Capital cut their price target on shares of Rackspace Hosting from $46.00 to $40.00 in a research note to investors on Thursday. Separately, analysts at Jefferies Group initiated coverage on shares of Rackspace Hosting in a research note to investors on Thursday, December 19th. They set a “hold” rating on the stock. Finally, analysts at UBS AG initiated coverage on shares of Rackspace Hosting in a research note to investors on Wednesday, December 18th. They set a “neutral” rating and a $38.00 price target on the stock. Two investment analysts have rated the stock with a sell rating, twelve have assigned a hold rating and five have issued a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and an average price target of $52.78.
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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