BMO Capital analyst Keith Bachman maintained a Hold rating on Rackspace Technology yesterday and set a price target of $5.00.
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Keith Bachman has given his Hold rating due to a combination of factors that balance emerging strengths with ongoing challenges. He views the new partnership with AMD, along with existing collaborations such as Palantir, as strategically important for positioning Rackspace in governed and regulated AI workloads, and this conviction supported his upward revision of the price target from $2 to $5.
At the same time, he notes that the company remains in the early stages of a multi‑year turnaround, with overall revenue still under pressure and growth uneven across segments. Public Cloud services and AI‑related workloads are gaining traction, but infrastructure and certain Private Cloud deals are ramping more slowly, and full‑year guidance still points to a modest revenue decline, leading him to stay neutral rather than move to a more aggressive rating.
In another report released on May 7, RBC Capital also maintained a Hold rating on the stock with a $2.50 price target.