Rackspace Hosting Price Target Lowered to $45.00 at Piper Jaffray (RAX)
Analysts at Piper Jaffray reduced their price objective on shares of Rackspace Hosting (NYSE:RAX) from $50.00 to $45.00 in a research report issued to clients and investors on Tuesday, Analyst Ratings Net reports. Piper Jaffray’s price objective points to a potential upside of 50.60% from the stock’s previous close.
Several other analysts have also recently commented on the stock. Analysts at Morgan Stanley upgraded shares of Rackspace Hosting from an “equal weight” rating to an “overweight” rating in a research note on Tuesday, March 25th. They now have a $45.00 price target on the stock. They noted that the move was a valuation call. Analysts at Wells Fargo & Co. reiterated an “outperform” rating on shares of Rackspace Hosting in a research note on Thursday, March 20th. One analyst has rated the stock with a sell rating, eleven have given a hold rating and six have issued a buy rating to the company. The company currently has a consensus rating of “Hold” and a consensus target price of $40.96.
Shares of Rackspace Hosting (NYSE:RAX) traded up 8.54% during mid-day trading on Tuesday, hitting $29.88. 14,810,757 shares of the company’s stock traded hands. Rackspace Hosting has a 52 week low of $26.18 and a 52 week high of $54.20. The stock’s 50-day moving average is $30.45 and its 200-day moving average is $36.21. The company has a market cap of $4.238 billion and a P/E ratio of 45.13. Rackspace Hosting also was the recipient of some unusual options trading on Monday. Investors acquired 20,455 call options on the stock. This is an increase of approximately 502% compared to the typical daily volume of 3,396 call options.
Rackspace Hosting (NYSE:RAX) last posted its quarterly earnings results on Monday, May 12th. The company reported $0.18 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.12 by $0.06. The company had revenue of $421.00 million for the quarter, compared to the consensus estimate of $419.63 million. During the same quarter last year, the company posted $0.19 earnings per share. Rackspace Hosting’s revenue was up 16.2% compared to the same quarter last year. Analysts expect that Rackspace Hosting will post $0.62 EPS for the current fiscal 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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