UPDATE: Citi Resumes Rackspace Technology Inc. (RXT) at Buy

Citi analyst Ashwin Shirvaikar resumes coverage on Rackspace Technology Inc. (NASDAQ: RXT) with a Buy rating and a price target of $28.00.

The analyst comments "We are resuming coverage of RXT with a Buy and $28 (from $31) price target. The
pause gives us an opportunity to properly document what changed in the last ~2-3 quarters under the new CFO but also highlight what remains constant. With the benefit of improved disclosure, we are modeling the impact of the change in the “character” of Multicloud revenues on the top-line and gross margins. We are also incorporating the reset in sales efforts towards greater “land and expand” and cash flow. What remains constant is the Multicloud opportunity and the traction towards newly released products / services. With the stock down ~18.5% since 1Q21, we believe the market already reflects the negatives. The positives likely come into focus with the forward look from 2Q21 (sequential bookings growth would be positive) and the first-ever investor day (Sep 20). Buy RXT."

For an analyst ratings summary and ratings history on Rackspace Technology Inc. click here. For more ratings news on Rackspace Technology Inc. click here.

Shares of Rackspace Technology Inc. closed at $19.86 yesterday.

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