NEW YORK (TheStreet) --Rackspace Hosting Inc. was upgraded to "outperform" from "sector perform" at Pacific Crest on Wednesday morning. The firm said it raised its rating on the open cloud company as it believes Rackspace is attractively valued and is seeing higher margins. "We are upgrading Rackspace as the risk/reward profile has improved," Pacific Crest said in an analyst note. Exclusive Report: Jim Cramer's Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. "It appears that execution issues that beset the company are mostly behind it, and management has painted an achievable and sufficiently wide 2015 outlook range for revenue growth (14% to 18% on constant-currency basis) and expects adjusted EBITDA margin between 33% and 36%," the firm added. Shares of Rackspace are down by 1.64% to $49.05 in pre-market trading today following the company's earnings results. Separately, TheStreet Ratings team rates RACKSPACE HOSTING INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation: "We rate RACKSPACE HOSTING INC (RAX) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity." You can view the full analysis from the report here: RAX Ratings Report RAX data by YCharts STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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