Benchmark Adjusts Numbers on Rackspace (RAX) Lower; See Negatives Short-Lived; Still Attractive Target
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Price: $31.99 --0%
Rating Summary:
5 Buy, 21 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
5 Buy, 21 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Benchmark maintains a 'Buy' on Rackspace (NYSE: RAX) price target of $63.00 (from $66.00).
Analyst, Clayton F. Moran, said, "Rackspace stock is down 29% from its high recently as investors are increasingly concerned about near-term cloud growth. We expect any negative impact of the OpenStack transition to be short-lived and modest. We adjust our estimates to reflect a slightly more conservative scenario. But Rackspace is growing EBITDA 25% to 30% per year and trades at 14x our 2012 estimate. In addition, Rackspace is a possible takeover target."
Moran lowers Q2 revenue estimate from $318 million to $315 million.
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 $42.86 yesterday.
Analyst, Clayton F. Moran, said, "Rackspace stock is down 29% from its high recently as investors are increasingly concerned about near-term cloud growth. We expect any negative impact of the OpenStack transition to be short-lived and modest. We adjust our estimates to reflect a slightly more conservative scenario. But Rackspace is growing EBITDA 25% to 30% per year and trades at 14x our 2012 estimate. In addition, Rackspace is a possible takeover target."
Moran lowers Q2 revenue estimate from $318 million to $315 million.
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 $42.86 yesterday.
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