Goldman Boosts Price Target on Rackspace (RAX)
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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 maintained their Neutral rating on Rackspace (NYSE: RAX) but boosted their price target to $64.00 (from $52.00).
Analyst Scott Goldman said "In our view, RAX’s financial performance provided enough to mitigate the bear thesis. While growth further decelerated ahead of the August 1 launch of OpenStack, revenue met expectations driven by a rebound in installed base growth; we estimate the 30 bp improvement, to 1.0%, contributed $2mn to revenue versus last quarter. While we do not view RAX as a near-term margin improvement story, profitability easily surpassed expectations, jumping 170 bps, to 35.1%."
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 $49.30 yesterday.
Analyst Scott Goldman said "In our view, RAX’s financial performance provided enough to mitigate the bear thesis. While growth further decelerated ahead of the August 1 launch of OpenStack, revenue met expectations driven by a rebound in installed base growth; we estimate the 30 bp improvement, to 1.0%, contributed $2mn to revenue versus last quarter. While we do not view RAX as a near-term margin improvement story, profitability easily surpassed expectations, jumping 170 bps, to 35.1%."
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 $49.30 yesterday.
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