Rackspace Hosting Inc (RAX) : Analyst Rating Update

Rackspace Hosting Inc (RAX) : Zacks Investment Research ranks Rackspace Hosting Inc (RAX) as 3, which is a Hold recommendation. 5 research analysts consider that the stocks fundamentals point to a bright future, hence they rate the stock as a Strong Buy. 2 other analysts are mildly bullish on the stock and favor a Buy. 1 more believe that the stock has more downside risks, hence they propose a Strong Sell. A total of 8 analysts believe that the stock has a limited upside, hence they advise a Hold. The average broker rating of 16 research analysts is 2.38, which indicates as a Buy.

Rackspace Hosting Inc (RAX) : The highest short term price target forecast on Rackspace Hosting Inc (RAX) is $45 and the lowest target price is $17. A total of 12 equity analysts are currently covering the company. The average price of all the analysts is $27 with a standard deviation of $8.08.

Rackspace Hosting Inc (NYSE:RAX): During Wednesdays trading session, Bulls were in full control of the stock right from the opening. The stock opened at $19.91 and $19.84 proved to be the low of the day. Continuous buying at higher levels pushed the stock towards an intraday high of $20.37. The buying momentum continued till the end and the stock did not give up its gains. It closed at $20.15, notching a gain of 0.70% for the day. The total traded volume was 1,993,066 . The stock had closed at $20.01 on the previous day.

Also, In the latest statement by the brokerage house, Raymond James downgrades its outlook on Rackspace Hosting Inc (NYSE:RAX). The current rating of the shares is Outperform, according to the research report released by the firm. Previously, the company had a rating of Strong Buy. The brokerage firm lowers the price target from $28 per share to $25 per share. The rating by the firm was issued on May 10, 2016. The company shares have dropped -44.77% from its 1 Year high price. On Jul 15, 2015, the shares registered one year high at $39.37 and the one year low was seen on Feb 17, 2016. The 50-Day Moving Average price is $23.09 and the 200 Day Moving Average price is recorded at $22.12.

Rackspace Hosting, Inc. (Rackspace) operates in the managed cloud segment of the business information technology (IT) market. The Company offers a portfolio of integrated IT solutions for common business needs, including for e-commerce, Web content management, Website hosting, data services, office mail and collaboration, and private clouds. It also offers advisory services for technology strategy, security and compliance, application assessment and migration, and DevOps automation. The Company also offers its solutions across a variety of IT form factors, including multi-tenant public cloud, dedicated single-tenant servers, private cloud, and hybrid cloud. It also delivers managed services, and Fanatical Support across its entire product portfolio. The Company sells its services to business customers in more than 120 countries. The Company has operations located across the United States, as well as in London, Amsterdam, Zurich, Hong Kong, Sydney and Mexico City.

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