(WEB HOST INDUSTRY REVIEW) — Web hosting provider Rackspace Hosting’s (www.rackspace.com) shares have received a boost from Goldman Sachs analyst Winston Len after he raised the company’s rating from “Neutral” to “Buy”, increasing its price tag from $16 to $23.
The proprietary cloud hosting pricing survey shows that Rackspace is well-positioned to maintain a competitive edge against new cloud rivals based on its value pricing and exceptional reputation for customer service.
Rackspace has devoted a considerable amount of focus on its cloud services, building the division’s management team.
In April, the company named chief strategy officer Lew Moorman as president of its cloud business, and just last week, it named six new key personnel to the cloud staff.
Shares for the San Antonio, Texas-based company, which first went public in August 2008, are currently at $18.24.
Len also says that trends among small and medium-sized businesses are “stabilizing”. He says this should help to accelerate the company’s growth from cloud and enterprise customer growth opportunities.
Rackspace has more than endured the ongoing recession, as its revenues from its cloud services continue to increase.
