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UPDATE: JP Morgan Downgrades Rackspace Hosting, Inc., Skeptical On Potential CenturyLink, Inc. Deal

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In a note issued Monday morning, JP Morgan downgraded shares of Rackspace Hosting, Inc. (NYSE: RAX) from Overweight to Neutral due to skepticism that a deal with CenturyLink, Inc. (NYSE: CTL) will happen.

The firm commented, "We believe the risk/reward for RAX is balanced at this level – potential upside as high as $50 if a sale really happens vs. a fall back to the pre-sale level around ~$30 if nothing happens."

Amid the downgrade, shares of Rackspace dropped 4.5 percent to $36.78.

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: JP MorganAnalyst Color News Downgrades Price Target Analyst Ratings

 

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