Jefferies Starts Rackspace (RAX) at Buy, $64 Price Target

Jefferies initiates coverage on Rackspace (NYSE: RAX) with a Buy. PT $64.00.

The firm comments, "Rackspace is the second largest Cloud-based hosting provider, behind Amazon Web Services. Competition in the Cloud space is intense. What differentiates Rackspace is its service-first vision, singular focus on the Cloud, seamless portfolio approach to service offerings, and a commitment to open standards. Although valuations have increased almost 25% since RAX reported 4Q11 results, given how fast the market is growing, we believe there is still an attractive upside potential from current levels."

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 $56.68 yesterday.

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