UPDATE: Credit Suisse Initiates Coverage on Rackspace Hosting with Outperform Rating, $49 PT on Positive Outlook for 2014

In a report published Friday, Credit Suisse analyst Sitikantha Panigrahi initiated coverage on Rackspace Hosting RAX with an Outperform rating and $49.00 price target. In the report, Credit Suisse noted, “We are initiating coverage of Rackspace with an Outperform rating and a target price of $49. After two years of decelerating growth, we believe that revenue is poised to reaccelerate in 2014 in a predictable manner, driven by improvements in products and sales execution. Furthermore, Rackspace is well positioned to benefit from secular growth trends in cloud computing, as we expect the next phase of cloud market growth to be led by enterprise adoption.” Rackspace Hosting closed on Thursday at $37.70.