Goldman Sachs Q2 Preview on Rackspace (RAX); Lowering Estimates on FX, OpenStack
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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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Goldman Sachs maintains a 'Neutral' on Rackspace (NYSE: RAX) price target of $52.00 (from $57.00).
Analyst, Scott Goldman, said, "We are lowering our 2Q12 revenue estimate to $319mn, from $324mn, largely reflecting a further deceleration in cloud growth as the company manages its migration to OpenStack. We anticipate this transition to slow new business growth, but also installed base growth, which we lower by 10 bps, to 0.9%. In addition, FX could pose a modest headwind, though the company is predominantly exposed to the pound, limiting the 2Q12 risk."
FY12 EPS estimate cut from $0.80 to $0.77, FY13 from $1.18 to $1.12 and FY14 from $1.63 to $1.56.
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 $45.08 yesterday.
Analyst, Scott Goldman, said, "We are lowering our 2Q12 revenue estimate to $319mn, from $324mn, largely reflecting a further deceleration in cloud growth as the company manages its migration to OpenStack. We anticipate this transition to slow new business growth, but also installed base growth, which we lower by 10 bps, to 0.9%. In addition, FX could pose a modest headwind, though the company is predominantly exposed to the pound, limiting the 2Q12 risk."
FY12 EPS estimate cut from $0.80 to $0.77, FY13 from $1.18 to $1.12 and FY14 from $1.63 to $1.56.
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 $45.08 yesterday.
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