Analysts Boost Rackspace Shares After Strong Earnings, Baker Hughes Has Upside, Avoid Avon Stock

Rackspace Hosting, Inc (NYSE:RAX): Wells Fargo increased its valuation range on Rackspace after the company reported stronger than expected Q4 results. The firm believes that the company is firing on all cylinders, and it reiterates an Outperform rating on the stock. After Rackspace reported stronger than expected Q4 results, Stifel Nicolaus expects the company’s strong performance to continue, and the firm thinks the company’s margins could expand slightly. It maintains a Buy rating on the stock.

Baker Hughes Incorporated(NYSE:BHI): Wells Fargo believes that the market is overly pessimistic about the outlook on frac demand and margins.

Theravance Inc.(NASDAQ:THRX): After meeting with management, Piper Jaffray believes investor concerns regarding Theravance are overblown. The firm recommends buying the stock ahead of potential 2012 clinical data catalysts.

Avon Products Inc.(NYSE:AVP): Buckingham recommends avoiding Avon Products until sustainable growth prospects materialize.

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com