Rackspace Hosting Reaches Analyst Target Price

In recent trading, shares of Rackspace Hosting Inc (NYSE: RAX) have crossed above the average analyst 12-month target price of $25.33, changing hands for $26.55/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking ...