UPDATE: Stifel Nicolaus Raises PT to $80 on Rackspace Hosting on Growth Outlook

Stifel Nicolaus reiterated its Buy rating on Rackspace Hosting RAX and increased its price target from $65 to $80. Stifel Nicolaus commented, "The quarter reinforces our view that Rackspace remains well positioned to sustain solid growth in the 25%+ area over the next few years. We expect this growth to be driven by the company's exposure to favorable secular trends around IT as a service and company-specific drivers including its large enterprise and OpenStack efforts. With the transition to OpenStack complete, Rackspace's focus now shifts to driving benefits from what it views to be a more robust platform with the goal of accelerating cloud growth." Rackspace Hosting closed at $66.08 on Tuesday.