Q4 Critical for Rackspace (RAX), Nomura Maintains Neutral

August 8, 2012 11:43 AM EDT
Get Alerts RAX Hot Sheet
Price: $31.99 --0%

Rating Summary:
    7 Buy, 25 Hold, 3 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 19 | Down: 19 | New: 13
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Today Nomura Securities maintained a Neutral rating on Rackspace (NYSE: RAX) but increased their price target to $54.00 (from $47.00).

Analyst Mike McCormack commented on the stock, say "we believe 4Q12 will be the deciding point for the investment community’s view on the company’s OpenStack strategy and ability to execute on it."

"One of the key benefits of the OpenStack platform is the expected higher operating leverage. However, at 2Q earnings, management stepped away from providing a timeline for the conversion of customers from the existing cloud platform to the OpenStack platform. As such, the company will be running two parallel systems for some time," he said.

For an analyst ratings summary and ratings history on Rackspace click here. For more ratings news on Rackspace click here.

Shares of Rackspace closed at $49.30 yesterday.

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