Rackspace (RAX) Price Target Lifted, Estimates Cut at Jefferies Post Q4

Jefferies analyst Mike McCormack bumped his price target on Rackspace (NYSE: RAX) to $48.00 (from $38.00) following Q4 results but trimmed estimates and maintained a Hold rating.

McCormack commented, "Revenue estimates narrowly missed consensus, though y/y constant currency growth accelerated for the third straight quarter. EBITDA beat expectations, with margins expanding to the highest level in three years. The outlook was in line, though merely reflects stable growth with some margin expansion."

The firm trimmed Q1 EPS from $0.23 to $0.19, FY 2015 EPS from $0.96 to $0.94 and FY 2016 EPS from $1.19 to $1.15.

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 $49.87 yesterday.

You May Also Be Interested In

• Wells Fargo Upgrades Kroger (KR) to Overweight, 'Building Catalysts Point to Attractive Stock Setup'
• Piper Sandler Upgrades CNO Financial Group (CNO) to Overweight
• Unity Biotechnology Inc (UBX) PT Lowered to $8 at H.C. Wainwright