UPDATE: Piper Jaffray Raises PT on Rackspace Hosting from $59 to $62
Piper Jaffray reiterated an Overweight rating on Rackspace Hosting (NYSE: RAX) and increased its price target from $59 to $62.
Piper Jaffray wrote,“ Rackspace reported strong second quarter results, beating Street estimates and showing robust growth. Installed base growth improved dramatically over the first quarter, and netupgradesimprovedsequentially.Whilemanagementdoesn'tgiveexplicitorquarterly guidance, they reiterated their outlook for the year. We think 3Q could show some growth deceleration as the transition to OpenStack continues, but we remain confident that growth can reaccelerate in 4Q and into 2013. We are reiterating our Overweight rating and raising our price target to $62.”
Rackspace Hosting closed at $49.30 on Tuesday.
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