Rackspace upgraded to buy

Investor's Business Daily

The network company shares were goosed up 5.9% to 37.20 after Cowen & Co. upgraded the stock on expectations that sequential revenue growth will pick up. Colby Synesael gave Rackspace (RAX) a 46 price target. Three-fourths of Rackspace's revenue comes from its website-hosting services. Growth from cloud-computing services, which account for the other one-fourth, has slowed. Synesael is expecting improvement within its managed hosting segment and then within its public cloud segment.

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