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UPDATE: D.A. Davidson Upgrades Rackspace Hosting

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In a report released Monday, D.A. Davidson analyst Mark Kelleher upgraded Rackspace Hosting (NYSE: RAX) from Underperform to Neutral with a 12 to 18 month $33.00 price target.

Analysts at D.A Davidson favor the recent news of Rackspace hiring Morgan Stanley to look for alternatives for the company, influencing a significant rally in the share price. D.A. Davidson announced in a note after that hiring that acquisitions are limited for the company. Rackspace's potential lies in its financial service capability, which Kelleher believes would be negatively factored in the synergies of potential acquisitions.

The 12 to 18 month price target of $33.00 is given by an enterprise value multiple of 6.5x the firms 2015 EBITDA estimate.

Latest Ratings for RAX

DateFirmActionFromTo
Nov 2016TerminatesEqual-Weight
Aug 2016DowngradesMarket PerformUnderperform
Aug 2016DowngradesStrong BuyNeutral

View More Analyst Ratings for RAX
View the Latest Analyst Ratings

Posted-In: D.A. Davidson Mark KelleherAnalyst Color Upgrades Analyst Ratings

 

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