UBS analyst Kevin McVeigh raised the price target on Rackspace Technology Inc. (NASDAQ: RXT) to $1.80 (from $1.65) while maintaining a Neutral rating.

The analyst comments "We think the RTX stock could continue climbing following its Q124 beat amid a mixed Q2 guide given positive commentary over the balance of the year as benefits from its transformation surface. Rackspace expects revenue to be stable Q2-to-Q3 followed by sequential growth in Q4 in both public cloud and private cloud. Rackspace also reported strong double-digit Q1 YoY bookings growth in public and private cloud, bringing it closer to lapping legacy customer exits from the prior year and returning the business to growth. In our view, positive bookings trends validate its new services led sales motion. In terms of expense, adjusted operating profit beat comfortably in the Q1 + Q2 guide and is expected to significantly improve in H224 as Rackspace unlocks efficiencies across its cost structure. These developments, coupled with easing liquidity as evidenced by a ratings upgrade from S&P, bode well for the RXT stock, in our view. Remain Neutral amid heightened volatility and macro concern."