Analysts: Rackspace’s Weakness Partly Due to Investment in Cloud Servers and 3 More Research Notes to Read
Rackspace Hosting Inc. (NYSE:RAX): Rackspace reported higher-than-expected revenue but lower-than-expected earnings per share, which JMP Securities believes is partly due to the company’s investment in new Performance Cloud Servers; the firm still believes the investment was worthwhile and expects the company to grow 20 percent in 2014 versus the consensus estimate of 16 percent; the analyst keeps a $67 price target and Outperform rating on Rackspace stock.
Phillips 66 (NYSE:PSX): JPMorgan raised its price target for Phillips 66 shares to $68, citing new projects in the Midstream segment and higher ethylene margin assumptions; the firm reiterates an Overweight rating on Phillips 66 stock.
Western Union Co. (NYSE:WU): First Analysis upgraded Western Union to Overweight from Equal Weight in order to reflect the company’s long-term prospects from repositioning, regained market share, and valuation. Western Union’s price target is $22.
F5 Networks Inc. (NASDAQ:FFIV): Deutsche Bank believes F5 Networks’s upcoming analyst day on Thursday will be a positive catalyst for the stock; the firm views the stock’s setup as attractive in 2014 and keeps a Buy rating and $107 price target on the F5 Networks name.