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Kaufman Bros. Upgrades Rackspace (RAX) to Buy; Raising PT After Good Q3 Results

November 8, 2011 7:08 AM EST
Get Alerts RAX Hot Sheet
Price: $31.99 --0%

Rating Summary:
    5 Buy, 21 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Kaufman Bros. upgraded Rackspace (NYSE: RAX) from Hold to Buy, price target raised from $38 to $49.

Kaufman analyst says, "Rackspace reported good results for 3Q11 as the company continues to experience a robust demand environment and has not seen a slowdown in its business activity as indicated by a stable installed base growth rate of 0.9% and sequential revenue growth of ~7%. While we remain concerned over the potential for an enterprise slowdown in early 2012, we believe the current environment is potentially creating a reallocation of capital budgets to managed hosting and hybrid environments, which may be partially responsible for what is driving the company's revised capex outlook above its previous forecast."

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 $41.75 yesterday.


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