The analyst firm raised its 2015 revenue and EPS estimates for the IT company to $2.084 billion and 96 cents a share from $2.079 billion and 92 cents a share, respectively.
Despite the increased price target and 2015 estimates, Credit Suisse changed its EPS estimates for 2014 and 2016 to 74 cents and $1.17 a share from 75 cents and $1.13 a share, respectively.
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Credit Suisse analysts wrote, "While investors are concerned about the increased competitive environment, we are encouraged by reacceleration in revenue growths in the last three quarters, which reinforces our believe that the execution continues to improve and Rackspace is well positioned to benefit from secular growth trends in cloud and the company can carve out a niche with its differentiated managed cloud offerings based on performance, "fanatical support", and OpenStack-based cloud."
Seprately, TheStreet Ratings team rates RACKSPACE HOSTING INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate RACKSPACE HOSTING INC (RAX) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity."