UPDATE: Benchmark Downgrades Rackspace Hosting to Hold, Lowers PT to $42

A report from Benchmark states that it has downgraded Raskspace Hosting

to Hold from Buy and reduced the price target from $50 to $42. In the report, Benchmark writes, “Rackspace is a high-growth, high multiple stock with heavy exposure to small and medium sized businesses. We believe it is the most vulnerable of the data center stocks to further stock price retrenchment. We maintain our estimates which reflect lower revenue growth than Street consensus but higher profitability”. RAX closed yesterday at $36.90.