Is it Now Time For Investors to Consider Buying Rackspace Hosting Inc (NYSE:RAX) Shares? RBC Capital Markets Upgrades The Company


Rackspace Hosting Inc (NYSE:RAX) Stock Upgrade

Shares of Rackspace Hosting Inc (NYSE:RAX) were hiked by investment analysts from RBC Capital Markets from a “Sector Perform” rating to a much more attractive “Outperform” rating in a comprehensive report issued on Tuesday morning. RBC Capital Markets now has a $36.00 Estimated Target Price on shares, and their Estimated Target Price would now indicate a possible upside of 25.79%.

From a total of 17 analysts covering Rackspace (NYSE:RAX) stock, 12 rate it a ”Buy”, 2 a “Sell”, and 8 a ”Hold”. This means that 55% of the ratings are positive. The highest target price is $55 while the lowest target price is $23. The mean of all analyst targets is $39 with a 41.75% above today’s ($28.6) stock price. Rackspace was the topic of 22 analyst reports since August 10, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets upgraded shares on December 1 to “Outperform” rating. CLSA downgraded shares to “Outperform” rating and $35 target share price in a report from an August 11. UBS maintained RAX stock in a recent report from November 10 with “Neutral” rating. Stifel Nicolaus maintained the rating on August 11. Stifel Nicolaus has a “Buy” rating and a $42 price target on shares. Finally, Tigress Financial upgraded the stock to “Buy” rating in a report issued on an August 13.

The stock decreased 0.07% or $0.02 on December 1, striking $28.6. Approximately 800 shares of stock traded hands. Rackspace Hosting, Inc. (NYSE:RAX) has declined 48.19% since April 28, 2015 and is downtrending. It has underperformed by 46.57% the S&P500.

Rackspace Hosting, Inc. operates in the managed cloud segment of the business information technology (IT) market. The company has a market cap of $3.73 billion. The Firm offers a portfolio of integrated IT solutions for common business needs, including for e-commerce, Web content management, Website hosting, data services, office mail and collaboration, and private clouds. It has 31.59 P/E ratio. It also offers advisory services for technology strategy, security and compliance, application assessment and migration, and DevOps automation.

According to Zacks Investment Research, “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” Get a free copy of the Zacks research report on Rackspace Hosting, Inc. (RAX)