D.A. Davidson & Co. Sees Solid Revenue Quarter, EBITDA Miss for Rackspace Hosting

In a report published Tuesday, D.A. Davidson & Co. analyst Mark Kelleher reiterated a Neutral rating and $33.00 price target on

. In the report, D.A. Davidson & Co. noted, “After the close Rackspace Hosting released Q2 2014 (Jun) quarterly results. Revenues were above consensus and management expectations while adjusted EBITDA for the quarter was slightly below consensus...Based on our 12-18 month price target of $33 (which incorporates an enterprise value of 6.5x our 2015 EBITDA estimate), we are reiterating our NEUTRAL rating on Rackspace Hosting.” Rackspace Hosting closed on Monday at $31.31.