UPDATE: Credit Suisse Reiterates Outperform Rating, Raises PT on Rackspace Hosting as Managed Cloud Momentum Continues

In a report published Tuesday, Credit Suisse analyst Sitikantha Panigrahi reiterated an Outperform rating on Rackspace Hosting RAX, and raised the price target from $40.00 to $45.00. In the report, Credit Suisse noted, “Rackspace reported Q3 revenue of $459.8 million with GAAP EPS of $0.18 versus consensus estimates of $458.4 million and $0.16, respectively. EBITDA margin of 34.5% (33.6% excluding one-time benefit of sales tax refund and expense due to professional fees) exceeded consensus of 32.3%. We reiterate our Outperform rating and increase our target price from $40 to $45, which implies a NTM EV/EBITDA multiple of 9.1x.” Rackspace Hosting closed on Monday at $37.32.