UPDATE: Jefferies Initiates Rackspace with Buy, $64 PT

Jefferies initiates its coverage on Rackspace RAX with a Buy rating and a price target of $64 on upside from retail/cloud side of the data center space. Jefferies notes, "In our view, what differentiates RAX, as corny as it sounds, is its service-first vision in a huge potential market (US SMEs). Valuations have undeniably increased substantially in 2012 YTD. However, given how fast the market is growing and the robust ecosystem of partners that its OpenStack platform is attracting, we believe there is still an attractive upside potential from current levels." RAX closed at $57.27 a share on Tuesday.