Rackspace Costs Seen Rising In Cloud Transition

By | December 14, 2015

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Rackspace Hosting (RAX) faces higher 2016 costs as it invests in staff to provide technical support for Amazon.com, Microsoft and other public clouds, says UBS, which lowered its price target on the stock. UBS analyst Steven Milunovich, who has a neutral rating on the stock, lowered his price target to 28 from 30. “We think that fiscal 2016 could turn into a back-end loaded year with some margin erosion,” wrote Milunovich in a report. “We continue Scalper1 News

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