UPDATE: Stifel Nicolaus Cuts PT to $65 on Rackspace Hosting; Earnings Disappointment

Stifel Nicolaus cuts its price target from $66 to $65 on Buy-rated Rackspace Hosting

following earnings disappointment in the latest quarter report. Stifel Nicolaus says, "Slightly reducing 2012 and 2013 revenue and EBITDA estimates to reflect more conservative installed base growth and expense assumptions. Reducing our 2012 revenue and adjusted EBITDA estimates to $1.325 billion and $459.5 million. Reducing our 2013 revenue and adjusted EBITDA estimates to $1.679 billion and $597 million. Reiterate Buy rating and slightly reducing our target price to $65 from $66 reflecting 15x our revised 2013 EBITDA forecast." RAX closed at $57.80 on Monday.