UPDATE: Raymond James Upgrades Rackspace Technology Inc. (RXT) to Strong Buy
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Raymond James analyst Frank Louthan upgraded Rackspace Technology Inc. (NASDAQ: RXT) from Outperform to Strong Buy with a price target of $28.50.
The analyst comments "We are upgrading shares of Rackspace to Strong Buy following the post-earnings downdraft on what we believe is a process of resetting expectations for growth and bookings from the prior narrative. The Street is in the process of determining if the bookings slowdown is due to 1) a lack of execution or 2) the business shift. Recurring revenue services models are not driven in the short term by quarterly bookings levels, and we have seen this fact be misunderstood in other names we have covered, including the old RAX. This is especially deceiving when a shift in the business model is happening and larger, lumpier deals distort the trend (data centers are a case in point)."
Shares of Rackspace Technology Inc. closed at $19.01 yesterday.
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