Credit Suisse Sees Rackspace Hosting Stepping Up Marketing Effort

In a report published Thursday, Credit Suisse analyst Sitikantha Panigrahi reiterated an Outperform rating and $57.00 price target on Rackspace Hosting, Inc. RAX. In the report, Credit Suisse noted, "Today Rackspace hosted its first 2015 customer roadshow event, Rackspace Solve, in San Francisco. The company plans to host this roadshow in eight different cities around the world in 2015, compared to three such events in 2014. Rackspace highlighted some of its customer success stories and how its customers leverage Rackspace's Managed Cloud as well its expertise to address IT operational challenges in a rapidly evolving technology landscape, including the explosion of cloud tools and apps, complexity of business users of cloud, and lack of skilled cloud engineers. Specifically, the CTO of Tinder emphasized how it has leveraged Rackspace's ObjectRocket service and expertise to manage administration and scaling of its MongoDB environments. Similarly, Walmart Labs highlighted the deployment of OpenStack centric data centers (130,000 CPUs) that handled the 2014 holiday season online shopping with the help of Rackspace. Rackspace Solve is in a right direction to attract prospects and customers to learn more about the value of Rackspace managed cloud offerings." Rackspace Hosting closed on Wednesday at $50.32.