UPDATE: Piper Jaffray Upgrades Rackspace Hosting from Neutral to Overweight

Piper Jaffray has published a report on Rackspace Hosting Inc

upgrading the company's stock from Neutral to Overweight. In the report, Piper Jaffray wrote, "We are upgrading Rackspace from Neutral to Overweight as we believe the recent pull back in the shares, coupled with strong operating performance yields an opportunity for investors to own this best in class company at an attractive level. The trend towards more outsourced hosting, managed cloud computing is likely to continue, and Rackspace's dominant, best in breed, thought leader position affords them the opportunity to increase share." Piper Jaffray upgraded Rackspace from Neutral to Overweight with a price target of $43.00. Rackspace closed Monday at $31.49.