UPDATE: Piper Jaffray Keeps Rackspace Hosting at Overweight as New Cloud Entrants Pose No Threats Yet
Piper Jaffray reiterated its Overweight rating and $77 price target on Rackspace Hosting (NYSE: RAX).
Piper Jaffray commented, "Over the last few months, Hewlett Packard has launched several new cloud services, including storage, CDN and more recently public cloud computing. Dell is also becoming more active in cloud development. The launch of these services has resulted in rising investor concern. With 'cloud' being the buzz word in IT, we're not surprised to see new entrants and expect more will come. However, we do not believe these entrants are an immediate or even medium-term threat to Rackspace's cloud growth."
Rackspace Hosting closed at $72.71 on Monday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.