Rackspace Hosting, Inc. RAX was upgraded by Evercore from Hold to Buy late Monday with a $42 price target.
According to Bloomberg, the Evercore analysts cited the company’s valuation and traction in its core business as reasons for the upgrade.
The traction has been the result of a greater emphasis on managed hosting and potential alliances with cloud providers.
Evercore expected Rackspace to gain investor interest if it delivers additional year-over-year revenue growth in 3Q.
Rackspace Hosting, Inc. closed Monday at $33.80, down 1.47 percent.
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