Morgan Stanley Believes Headquarters Visit Highlights Return to Core Strengths for Rackspace Hosting

In a report published Thursday, Morgan Stanley analyst Simon Flannery reiterated an Equal-Weight rating on Rackspace Hosting RAX. In the report, Morgan Stanley noted, “We visited Rackspace's San Antonio headquarters and met with various members of the new management team. Following a year of transition to OpenStack, RAX is looking to reaccelerate revenues by leveraging is product expertise and fanatical support capabilities.” Rackspace Hosting closed on Wednesday at $36.95.