Wall Street analysts’ views on Rackspace stock
Earlier in this series, we discussed the factors that have battered Rackspace (RAX) stock lately, despite strong growth in the cloud space. In the software space, where Rackspace operates, Microsoft (MSFT), Oracle (ORCL), IBM (IBM), and Salesforce.com (CRM) are prominent players. Let’s take a look at select market-centric views and metrics from Rackspace.
Of the 21 analyst recommendations for Rackspace stock, there is only one “sell” recommendation. As we can see in the chart below, more than half of the analyst recommendations on the stock were “hold.” The remainder were “buy” recommendations.
Rackspace’s price performance
Rackspace’s stock price movement during the past month has been negative. As of May 16, the company’s stock has fallen ~4.1%. In the last one year, Rackspace’s stock value fell ~60%. Earlier in the series, we highlighted the factors that are exerting pressure on Rackspace stock.
Analyst target prices
The Wall Street consensus target price for Rackspace is $25.80 per share as of May 16. The median target price was $23.00 while Rackspace’s closing price was $22.94 on May 16.
You might consider investing in the SPDR S&P 500 ETF (SPY) to gain exposure to Rackspace, which makes up 0.02% of SPY. Investors who would like application software exposure could also consider SPY, which invests ~7% of its holdings in the space.