In a report released yesterday, Keith Bachman from BMO Capital maintained a Hold rating on Rackspace Technology, with a price target of $1.40.
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Keith Bachman has given his Hold rating due to a combination of factors impacting Rackspace Technology’s performance. The company reported a solid quarter with some positive trends, such as a slight improvement in revenue decline and better-than-expected EBIT margins. However, the guidance for the upcoming quarter was mixed, with expectations of a decline in Private Cloud revenue, which fell short of initial projections.
Despite some progress, Bachman believes that Rackspace is still in the early stages of a significant transformation under new leadership. The company faces ongoing challenges in achieving sustainable growth in its cloud services. While there are positive signs, such as strong bookings in specific markets like healthcare in the U.K., the overall outlook remains cautious. Therefore, Bachman maintains a Hold rating, reflecting the need for further evidence of consistent improvement before considering a more optimistic stance.
According to TipRanks, Bachman is a 5-star analyst with an average return of 8.6% and a 54.03% success rate. Bachman covers the Technology sector, focusing on stocks such as MongoDB, Oracle, and HubSpot.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $1.00 price target.