UPDATE: Jefferies Downgrades Rackspace Hosting to Hold During OpenStack Transition

Jefferies reduces its rating on Rackspace Hosting

from Buy to Hold and cuts its price target from $64 to $54. Jefferies notes, "Although we remain positive on the long term hosting/cloud opportunity, we believe in the near-term, Rackspace's growth could modestly slow down as it migrates to the OpenStack platform. Consequently, as a trade we recommend staying on the sidelines over the next several months.We are downgrading RAX to Hold from Buy and reducing our PT to $54 from $64." RAX closed at $47.02 on Tuesday.