Rackspace revenue rises 10.9 percent

Wall Street analysts have a mean estimate for long-term growth of $20.29 on the stock.

Rackspace reported second-quarter net income increased almost 30… The company earned $489 million during the quarter, compared to analyst estimates of $490.54 million. They alluded to at least one large deal being in the works that should give investors confidence in the company’s financial picture long term. “Despite the noise surrounding the strategic repositioning, we believe that Rackspace shares are now undervalued, given its growth rate and free cash flow generation”.

Rackspace Hosting, Inc. (Rackspace) operates in the managed cloud segment of the business information technology (IT) market. Equities research analysts forecast that Rackspace Hosting will post $0.87 earnings per share for the current fiscal year. The stock has a 50-day moving average of $36.04 and a 200-day moving average of $45.29. The lowest analyst target sees the stock at $35 over the same time period. The stock is down 31.5% year to date, though shares are up 7% in the past 52-weeks. Rackspace has a 52 week low of $28.80 and a 52 week high of $56.2. The broker however, cut its price target on the stock to $130 from $135 citing iPhone demand uncertainty.

Celldex Therapeutics, Inc. (CLDX) was reiterated as “Outperform” with a $42 from $45 price target on Tuesday by Oppenheimer. The Organization offers a portfolio of integrated IT solutions for common business wants, including for e-commerce, Web content management, info services, Website hosting, office mail and cooperation, and private clouds. Finally, RBC Capital dropped their price target on Rackspace Hosting from $43.00 to $36.00 and set a “sector perform” rating on the stock in a research report on Monday. The company has a market cap of $4,532 million and the number of outstanding shares has been calculated to be 142,818,000 shares. It also offers advisory services for technology strategy, security and conformity, application assessment and migration, and DevOps automation. The company’s service offering combines hosting on dedicated hardware and on multi-tenant pools of virtualized hardware in a way that suits each customer’s requirements.

Rackspace’s strength has been in providing what it calls fanatical service, training and technical support, mostly to small and midsize businesses. The Company has operations located over America, together with in Sydney, London, Amsterdam, Zurich, Hong Kong and Mexico City.