Wells Fargo Resumes Coverage on Rackspace (RAX) at Outperform; Best In Class Growth And ROIC Merit A Premium Multiple
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Price: $31.99 --0%
Rating Summary:
5 Buy, 21 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 11 | New: 17
Rating Summary:
5 Buy, 21 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 11 | New: 17
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Wells Fargo resumes coverage on Rackspace (NYSE: RAX) with an Outperform. PT $58.00.
Wells analyst says, "RAX is a pure play on the strong secular growth trends of managed hosting and cloud computing sectors. As a result, we think RAX can achieve revenue growth in the high 20% range in 2012 and believe that upside to street EBITDA estimates is possible even if a weak economic environment causes a slow down in growth. Furthermore, RAX exhibits the best capital returns in our Internet Infrastructure coverage and has the ability to further scale returns as cloud computing grows. Thus, we believe RAX deserves a premium multiple to other stocks in the group. Our EBITDA per share estimates are $2.46 for 2011 and $3.30 for 2012."
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 $41.06 yesterday.
Wells analyst says, "RAX is a pure play on the strong secular growth trends of managed hosting and cloud computing sectors. As a result, we think RAX can achieve revenue growth in the high 20% range in 2012 and believe that upside to street EBITDA estimates is possible even if a weak economic environment causes a slow down in growth. Furthermore, RAX exhibits the best capital returns in our Internet Infrastructure coverage and has the ability to further scale returns as cloud computing grows. Thus, we believe RAX deserves a premium multiple to other stocks in the group. Our EBITDA per share estimates are $2.46 for 2011 and $3.30 for 2012."
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 $41.06 yesterday.
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