Jefferies Sees Encouraging Revenue Trends For Rackspace Hosting

In a report published Tuesday, Jefferies analyst Mike McCormack reiterated a Hold rating and $35.00 price target on Rackspace Hosting (NYSE: RAX).

In the report, Jefferies noted, “RAX beat on topline results, with installed base growth and new customer revenue topping estimates. The company appears to be stabilizing revenue deceleration (on a YoY, constant currency basis), though results are not yet at levels that warrant meaningful multiple expansion. In addition, shares should continue to take their cue from the uncertain strategic review. We maintain our Hold rating and $35 year-end price target.”

Rackspace Hosting closed on Monday at $31.31.