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Rackspace Hosting, Inc. (NYSE:RAX) was downgraded by investment analysts at Vetr from a "strong-buy" rating to a "buy" rating in a research note issued to investors on Wednesday. They currently have a $27.60 price target on the hosting company's stock. Vetr's price objective would suggest a potential upside of 10.58% from the company's previous close.

Shares of Rackspace Hosting (NYSE:RAX) opened at 24.96 on Wednesday. The stock's 50 day moving average is $23.71 and its 200-day moving average is $22.88. Rackspace Hosting has a 12-month low of $15.05 and a 12-month high of $40.00. The firm has a market cap of $3.14 billion and a price-to-earnings ratio of 23.22.

Rackspace Hosting (NYSE:RAX) last announced its earnings results on Monday, May 9th. The hosting company reported $0.34 EPS for the quarter, beating the Thomson Reuters' consensus estimate of $0.22 by $0.12. During the same quarter in the previous year, the company earned $0.20 earnings per share. The company earned $518 million during the quarter, compared to the consensus estimate of $519.08 million. The business's revenue was up 7.9% on a year-over-year basis. On average, analysts anticipate that Rackspace Hosting will post $1.09 EPS for the current fiscal year.

Several hedge funds have modified their holdings of the stock. Janus Capital Management increased its stake in shares of Rackspace Hosting by 1.6% in the third quarter. Janus Capital Management now owns 825,700 shares of the hosting company's stock worth $20,378,000 after buying an additional 12,732 shares during the period. Acadian Asset Management increased its stake in shares of Rackspace Hosting by 3,208,917.7% in the fourth quarter. Acadian Asset Management now owns 1,989,591 shares of the hosting company's stock worth $50,375,000 after buying an additional 1,989,529 shares during the period. Nordea Investment Management AB increased its stake in shares of Rackspace Hosting by 3,799.7% in the fourth quarter. Nordea Investment Management AB now owns 123,700 shares of the hosting company's stock worth $3,132,000 after buying an additional 120,528 shares during the period. Russell Frank Co increased its stake in shares of Rackspace Hosting by 500.6% in the fourth quarter. Russell Frank Co now owns 597,020 shares of the hosting company's stock worth $15,070,000 after buying an additional 497,608 shares during the period. Finally, DIAM Co. Ltd. increased its stake in shares of Rackspace Hosting by 902.8% in the fourth quarter. DIAM Co. Ltd. now owns 138,248 shares of the hosting company's stock worth $3,500,000 after buying an additional 124,462 shares during the period.

A number of other research firms have also recently issued reports on RAX. JMP Securities cut their price target on Rackspace Hosting from $55.00 to $44.00 in a report on Tuesday, February 16th. Zacks Investment Research upgraded Rackspace Hosting from a "sell" rating to a "hold" rating in a report on Sunday, February 7th. Wells Fargo restated an "outperform" rating on shares of Rackspace Hosting in a report on Monday, March 14th. FBN Securities upgraded Rackspace Hosting from an "underperform" rating to a "sector perform" rating and cut their price target for the stock from $30.00 to $21.00 in a report on Wednesday, February 17th. Finally, RBC Capital restated a "buy" rating and set a $26.00 price target on shares of Rackspace Hosting in a report on Tuesday, May 10th. One research analyst has rated the stock with a sell rating, fourteen have issued a hold rating, ten have given a buy rating and one has assigned a strong buy rating to the stock. The c ompany presently has an average rating of "Hold" and an average price target of $30.62.

Rackspace Hosting, Inc (Rackspace) operates in the managed cloud segment of the business information technology (IT) market. The Company offers a portfolio of integrated IT solutions for common business needs. The Company offers services for certain applications, including e-commerce and Web content management sites, business-productivity applications, such as e-mail and collaboration, and data stores.

To view Vetr's full report, visit Vetr's official website.

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Source: Rackspace Hosting, Inc. (RAX) Rating Lowered to Buy at Vetr Inc.