Benchmark Raises PT on Rackspace to $43 (RAX)

Benchmark is out with its report today on Rackspace (NYSE: RAX) raising its PT from $40 to $43.

In a note to clients, Benchmark writes, "Rackspace reported 4Q10 results above expectations as growth accelerated. The 2011 growth outlook of greater than 24% is impressively higher than anticipated. New products are driving higher revenue per server and per customer, creating efficiency and momentum. We raise our 2011 revenue growth estimate from 18% to 25%. We maintain a Buy rating. We raise our price target $3 to $43 per share, reflecting accelerating momentum.

At the time of posting, shares of RAX were trading at $38.95, up 5.21% from Thursday's close.