Goldman Sachs Maintains a 'Neutral' on Rackspace (RAX)

Goldman Sachs maintains a 'Neutral' on Rackspace (NYSE: RAX) price target of $57.00.

Analyst, Scott Goldman, said, "We view the dip in installed base growth as temporary, though the results suggest the metric could carry more volatility than investors anticipated. We remain Neutral on shares of RAX, as variability in the outlook likely limits upward estimate revisions and further outperformance."

"Following 1Q12 results, we are lowering 2012 revenue and adj. EBITDA forecasts by -0.8%/-0.4% to $1.35 bn/$455 mn. Our 2012E-2014E EPS is unchanged at $0.80/$1.18/$1.63."

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 $57.80 yesterday.

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