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Rackspace Hosting (NYSE:RAX) was upgraded by DA Davidson from an “underperform” rating to a “neutral” rating in a research note issued on Monday, reports. The firm currently has a $33.00 target price on the stock, down from their previous target price of $43.00. DA Davidson’s target price points to a potential upside of 2.64% from the company’s current price. The analysts noted that the move was a valuation call.

Shares of Rackspace Hosting (NYSE:RAX) opened at 32.15 on Monday. 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 $35.93 and its 200-day moving average is $34.57. The company has a market cap of $4.568 billion and a P/E ratio of 53.08. Rackspace Hosting also saw a significant growth in short interest in the month of June. As of June 30th, there was short interest totalling 13,134,836 shares, a growth of 27.6% from the June 13th total of 10,292,820 shares. Based on an average daily volume of 3,022,151 shares, the short-interest ratio is currently 4.3 days. Currently, 11.2% of the shares of the company are sold short.

Rackspace Hosting (NYSE:RAX) last released its earnings data on Monday, May 12th. The company reported $0.18 EPS for the quarter, beating the Thomson Reuters 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 in the prior year, the company posted $0.19 earnings per share. The company’s quarterly revenue was up 16.2% on a year-over-year basis. Analysts expect that Rackspace Hosting will post $0.68 EPS for the current fiscal year.

Several other analysts have also recently commented on the stock. Analysts at Davidson downgraded shares of Rackspace Hosting to an “underperform” rating in a research note on Friday, June 13th. Separately, analysts at JPMorgan Chase & Co. initiated coverage on shares of Rackspace Hosting in a research note on Thursday, May 15th. They set an “overweight” rating and a $35.00 price target on the stock. Finally, analysts at Nomura reiterated a “hold” rating on shares of Rackspace Hosting in a research note on Tuesday, May 13th. They now have a $39.00 price target on the stock, down previously from $42.00. One analyst has rated the stock with a sell rating, ten have issued a hold rating and seven have assigned a buy rating to the company. The stock has a consensus rating of “Hold” and an average price target of $41.04.

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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