Rackspace Hosting (NYSE: RAX) was downgraded by equities researchers at Wells Fargo from an “outperform” rating to a “market perform” rating in a report issued on Tuesday, TheFlyOnTheWall.com reports. They currently have a $52.00 target price on the stock, up from their previous target price of $47.00. The analysts noted that the move was a valuation call.
Shares of Rackspace Hosting (NYSE: RAX) traded down 2.16% during mid-day trading on Tuesday, hitting $48.40. Rackspace Hosting has a 52 week low of $40.57 and a 52 week high of $81.36. The stock’s 50-day moving average is currently $55.51. The company has a market cap of $6.678 billion and a P/E ratio of 65.96.
Rackspace Hosting (NYSE: RAX) last released its earnings data on Tuesday, February 12th. The company reported $0.21 earnings per share for the quarter, missing the analysts’ consensus estimate of $0.22 by $0.01. The company had revenue of $352.90 million for the quarter, compared to the consensus estimate of $355.42 million. During the same quarter in the previous year, the company posted $0.18 earnings per share. The company’s revenue for the quarter was up 24.6% on a year-over-year basis. Analysts expect that Rackspace Hosting will post $0.96 EPS for the current fiscal year.
Several other analysts have also recently commented on the stock. Analysts at Canaccord Genuity cut their price target on shares of Rackspace Hosting from $60.00 to $55.00 in a research note to investors on Monday. They now have a “hold” rating on the stock. Separately, analysts at Credit Agricole initiated coverage on shares of Rackspace Hosting in a research note to investors on Wednesday, March 27th. They set an “underperform” rating and a $52.00 price target on the stock. Finally, analysts at Pacific Crest downgraded shares of Rackspace Hosting from an “outperform” rating to a “sector perform” rating in a research note to investors on Friday, March 22nd.
One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating and eight have assigned a buy rating to the company. The company presently has a consensus rating of “Hold” and a consensus target price of $65.40.
Rackspace Hosting, Inc. (NYSE: RAX) is the service in cloud computing industry. Rackspace Hosting offers a portfolio of cloud computing services, including Dedicated Cloud hosting and Public Cloud hosting.