UPDATE: Stifel Nicolaus Increases Target to $66 on Rackspace Hosting

Stifel Nicolaus reiterates its Buy rating on Rackspace Hosting

and raises its price target on shares to $66 from $50, following another strong quarter. Stifel Nicolaus says, "We continue to see multiple dimensions to the growth story, including secular, cyclical, and company specific factors. While the company's 4Q margin outperformance was a key positive, we believe that the primary focus of the company remains driving revenue growth with an expectation for stable margins absent. That said, we believe the company's outlook for margins is conservative and we see the potential for some modest margin expansion." RAX closed at $49.23 a share on Monday.