Analysts Start Rackspace Coverage As Quiet Period Ends (RAX)

Posted: September 17, 2008 at 7:46 am

Rackspace_logoRackspace Hosting, Inc. (NYSE: RAX) is seeing its quiet period end after its IPO, which now allows analysts in the underwriting group to initiate research coverage of the stock.  So far this IPO has dropped from north of $11 after its August debut down to as low as $8.00 before coming back to close at $8.83 yesterday. 

Rackspace_ipo_chart_2We have also provided a chart from stockcharts.com to show how it has performed since coming public.

Below is a quick snapshot of research initiations we have seen today:

  • Credit Suisse started as OUTPERFORM
  • Goldman Sachs started as NEUTRAL
  • Jefferies started as BUY
  • Merrill Lynch started as BUY
  • RBC Capital started as OUTPERFORM

Shares are indicated slightly higher, but so far we have not yet seen any trades in Rackspace. 

Jon C. Ogg
September 17, 2008

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