Rackspace Hosting Inc. (RAX) Raised to “Buy” at Zacks Investment Research
Rackspace Hosting Inc. (NYSE:RAX) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Tuesday. The brokerage currently has a $36.00 target price on the hosting company’s stock. Zacks Investment Research’s price objective suggests a potential upside of 13.28% from the company’s current price.
According to Zacks, “As the world’s leader and specialist in hosting, Rackspace Hosting is changing the way businesses worldwide buy IT. Rackspace delivers computing-as-a-service, integrating the industry’s best technologies into a flexible service offering, making computing more reliable and affordable. A trusted partner to companies of all sizes, Rackspace enables IT departments to be more effective. Rackspace is distinguished by its award-winning Fanatical Support, furthering the company’s mission to be one of the world’s greatest service companies. Rackspace featured in the top 30 of both the Sunday Times 100 Best companies to work for list and the Financial Times Great Place to Work Awards, 2008. Rackspace’s portfolio of hosted services includes managed hosting, email hosting and cloud hosting “
A number of other brokerages have also commented on RAX. Royal Bank Of Canada lifted their price target on Rackspace Hosting from $26.00 to $33.00 and gave the stock an “outperform” rating in a report on Wednesday, August 10th. Tigress Financial lowered Rackspace Hosting from a “strong-buy” rating to a “neutral” rating in a report on Monday, August 29th. Vetr upgraded Rackspace Hosting from a “hold” rating to a “buy” rating and set a $24.00 price target on the stock in a report on Tuesday, August 2nd. SunTrust Banks Inc. assumed coverage on Rackspace Hosting in a report on Thursday, July 21st. They set a “neutral” rating and a $25.00 price target on the stock. Finally, Oppenheimer Holdings Inc. reiterated an “outperform” rating and set a $32.00 price target (up from $30.00) on shares of Rackspace Hosting in a report on Wednesday, August 10th. Two analysts have rated the stock with a sell rating, seventeen have assigned a hold rating and six have given a buy rating to the company’s stock. The stock has a consensus rating of “Hold” and an average target price of $29.03.
This story is the sole property of American Banking News and it was originally published by American Banking News. If you are reading this story on another website, that means this article was illegally copied and re-published to this website in violation of U.S. and International copyright law. The original version of this article is available at http://www.americanbankingnews.com/2016/10/11/rackspace-hosting-inc-rax-raised-to-buy-at-zacks-investment-research.html
Rackspace Hosting (NYSE:RAX) remained flat at $31.78 during mid-day trading on Tuesday. The company’s stock had a trading volume of 371,976 shares. Rackspace Hosting has a 1-year low of $15.05 and a 1-year high of $32.14. The company has a market cap of $4.00 billion, a PE ratio of 27.98 and a beta of 1.66. The firm’s 50 day moving average price is $31.18 and its 200 day moving average price is $25.63.
Rackspace Hosting (NYSE:RAX) last posted its earnings results on Monday, August 8th. The hosting company reported $0.38 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.22 by $0.16. Rackspace Hosting had a return on equity of 16.80% and a net margin of 7.39%. The company had revenue of $489.40 million for the quarter, compared to analyst estimates of $521.07 million. During the same quarter last year, the company earned $0.20 earnings per share. The company’s revenue for the quarter was up 7.0% on a year-over-year basis. On average, equities research analysts predict that Rackspace Hosting will post $1.07 earnings per share for the current fiscal year.
Several large investors have recently added to or reduced their stakes in the stock. Bank of Montreal Can bought a new stake in Rackspace Hosting during the second quarter worth $46,435,000. PGGM Investments raised its stake in Rackspace Hosting by 653.0% in the second quarter. PGGM Investments now owns 1,375,145 shares of the hosting company’s stock worth $28,686,000 after buying an additional 1,192,533 shares during the period. Emerald Acquisition Ltd. bought a new stake in Rackspace Hosting during the second quarter worth $23,593,000. Acadian Asset Management LLC raised its stake in Rackspace Hosting by 38.9% in the second quarter. Acadian Asset Management LLC now owns 3,791,560 shares of the hosting company’s stock worth $79,095,000 after buying an additional 1,062,606 shares during the period. Finally, Highbridge Capital Management LLC bought a new stake in Rackspace Hosting during the second quarter worth $15,543,000. 83.59% of the stock is owned by institutional investors.
About Rackspace Hosting
Rackspace Hosting, Inc (Rackspace) operates in the managed cloud segment of the business information technology (IT) market. The Company offers a portfolio of integrated IT solutions for common business needs. The Company offers services for certain applications, including e-commerce and Web content management sites, business-productivity applications, such as e-mail and collaboration, and data stores.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Rackspace Hosting Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Rackspace Hosting Inc. and related companies with MarketBeat.com's FREE daily email newsletter.