Collins Stewart Raises Price Target on Rackspace (RAX), Sees No Pressure in 2012

Collins Stewart is maintaining its Neutral rating on shares of Rackspace (NYSE: RAX), while raising its price target from $43 to $50.

The company reported solid Q4 results and offered explicit guidance.

The firm reports, "With a projected ~30% top line growth in 2012 and stable margins, we find Rackspace to be one of the more attractive growth stories in our universe."

Collins Stewart does not anticipate result we be under pressure in 2012, despite increasing competitive headwinds and the rapidly increasing number of alternatives.

For Q1, the firm estimates EPS of $0.18. Collins Stewart raised its FY12 EPS and sales forecasts from $$0.81 and $1.29 billion to $0.85 and $1.324 billion.

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 $49.23 yesterday.

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