Rackspace Hosting (RAX)

Add a New Bulls Reason Company: Rackspace Hosting (RAX) Current price: Headline: (100 character max) Analysis: Cancel 100% agree 14 votes   Severly Undervalued Created when NYSE:RAX was $0.00 | Edit | History Assuming the mean analyst top line growth estimates and even higher CapEx estimates this company still trades at a tremendous discount at its current price. Assuming an 2013 exit EBITDA multiple of 3.5 and sensitizing relative to WACCs between 9 and 13%, this company shoudl still be trading between $11.50-$11.75. Similarly, using a very very conservative perpetuity growth rate of 2.5% and a WACC of 10.5% the target share price 8.62, implying over a 30% premium to what the stock is currently at. Besides the technical analysis the company is the leader in its market and looking at its closest comp, it trades at a significant P/E and revenue multiple discount. I've never seen a company with such growth potential that has been so mistreated by the market. I think this is a very strong BUY for any investor. (100 character max) Cancel 0% agree 0 votes   invention of the wheel Top Contributor: brian mather | Created when NYSE:RAX was $31.12 | Edit | History We are entering a new phase in this world unseen before-Rackspace is a leader in the "cloud computing"-I loved them when I bought them at 18.49-I love them even more today at approx 32.00-I think they are going to 90.00 and am buying everything I can at dips. (100 character max) Cancel

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.