Bank of America Merrill Lynch Maintains Buy on Rackspace Hosting

Bank of America Merrill Lynch is out with its report today on Rackspace Hosting

, maintaining Buy. In a note to clients, Bank of America Merrill Lynch writes, "RAX remains our top infrastructure Cloud name differentiating itself through quality support, proprietary management software and scale. RAX is a LT winner chasing an estimated $10bn TAM and levered to a potential SMB recovery (~90% of revs). Our PO of $49 is based on our SOTP analysis of managed hosting and Cloud." Shares of RAX closed Wednesday at $43.90.