Benchmark Capital Downgrades Rackspace To Hold (RAX)

Benchmark Capital is downgrading Rackspace Hosting, Inc. RAX to Hold from Buy on a recent run up in shares. It has a $22 price target on shares. In a research report, Benchmark Capital notes, "We downgrade Rackspace from Buy to Hold. The stock is up recently due to acquisition activity, specifically the cloud-driven bidding war for 3PAR PAR. While Rackspace is a possible takeover target, potential acquirers have alternatives and we have no reason to believe a sale is imminent. Given a weakening economy and a volatile stock, we believe the risk/reward has turned neutral. Our price target remains $22 per share." Shares of Rackspace closed at $20.40 yesterday.