Canaccord Genuity Starts Rackspace (RAX) at Hold; Very Attractive Business Model, But Shares Fully Valued
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Price: $31.99 --0%
Rating Summary:
5 Buy, 21 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
5 Buy, 21 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity initiates coverage on Rackspace (NYSE: RAX) with a Hold. PT $50.00.
Analyst, Greg Miller, said, "We believe Rackspace Hosting has one of the most attractive business models in the sector and benefits from a strong secular tailwind of the desire to outsource data center requirements. With less capital intensity than carrier-neutral models like Equinix (Nasdaq: EQIX), RAX’s managed hosting model could generate better near-term returns than others. Although several companies will likely come to the market in the next few years, we believe Rackspace will continue to be the dominant hosting company in a still highly fragmented market."
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 $58.33 yesterday.
Analyst, Greg Miller, said, "We believe Rackspace Hosting has one of the most attractive business models in the sector and benefits from a strong secular tailwind of the desire to outsource data center requirements. With less capital intensity than carrier-neutral models like Equinix (Nasdaq: EQIX), RAX’s managed hosting model could generate better near-term returns than others. Although several companies will likely come to the market in the next few years, we believe Rackspace will continue to be the dominant hosting company in a still highly fragmented market."
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 $58.33 yesterday.
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