Raymond James analyst Frank Louthan downgraded Rackspace Technology (RXT) to Market Perform from Outperform without a price target Rackspace performed in line to ahead of Q1 estimates with strong bookings and issued positive Q2 guidance as the “ship continues turning,” but the path to improved growth and free cash flow is longer than anticipated, the analyst tells investors in a research note. The firm believes the company’s shift to larger contracts will also take more time for the company to adjust to. As such, it believes a Market Perform rating is more appropriate.
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