Rackspace Technology

Digital Transformation And Cloud Adoption Will Fuel Expansion

AN

AnalystHighTarget

Not Invested

Community Contributor

Published

07 Aug 25

Updated

21 May 26

Views

50

21 May

US$4.15

AnalystHighTarget's Fair Value

US$5.00

17.0% undervalued

1Y

273.9%

7D

-28.7%

Loading

1Y

273.9%

7D

-28.7%

You can edit this narrative until May 22 10:10 AM. Then, changes will post as Updates.

Author's Valuation

US$517.0% undervalued

AnalystHighTarget Fair Value

Shared on 21 May 26

Fair value Increased 100%

RXT: Q4 Execution And FY26 Guidance Will Support Re Rating Potential

Analysts turn more upbeat on Rackspace after a stronger finish to the year and guidance that helps set clearer expectations for what comes next. New partnerships around enterprise AI and cyber recovery for tightly regulated customers add fresh proof points that could change how the market views the business.

0 views

Shared on 01 May 26

RXT: Q4 Outperformance And FY26 Outlook Will Support Renewed Upside Potential

Narrative update Analysts have lifted Rackspace Technology's blended price target to $2.50, citing better than expected Q4 results, progress in the business, and FY26 guidance that aligns with prior expectations, along with recent target moves from $1.75 to $2.50 and from $1.30 to $2.00. Analyst Commentary Recent research highlights a more constructive tone around Rackspace Technology, with bullish analysts pointing to better than expected Q4 results and FY26 guidance that aligns with earlier expectations.

9 views

Shared on 02 Apr 26

RXT: Q4 Execution And FY26 Guidance Will Support Constructive Upside Potential

Analysts have raised Rackspace Technology's price target to a range of $2 to $2.50, up from $1.30 to $1.75, citing better-than-expected Q4 results and progress toward guidance that aligns with FY26 expectations. Analyst Commentary Recent price target moves point to improving sentiment around Rackspace Technology, with bullish analysts reacting to Q4 results and guidance that align with FY26 expectations.

4 views

Shared on 04 Mar 26

Fair value Increased 43%

RXT: Cloud Progress And FY26 Outlook Will Shape Measured Upside Potential

Analysts have raised their price target on Rackspace Technology to $2.50 from $1.75, citing better than expected Q4 results, progress in the business, and FY26 guidance that aligned with their expectations. Analyst Commentary Bullish analysts are pointing to the recent reset in expectations and fresh guidance as reasons to revisit Rackspace Technology with a more constructive view on the shares.

2 views

Shared on 18 Feb 26

RXT: Cloud Migrations Will Drive Future Upside Narrative Conviction

Narrative Update: Rackspace Technology Analyst Price Target Shift Analysts have modestly adjusted their $1.75 price target on Rackspace Technology, citing updated assumptions for revenue growth, profit margins and future P/E that reflect a slightly lower discount rate and a more refined outlook for the business. What's in the News Niterra EMEA GmbH selected Rackspace Technology to support a rapid migration to Google Cloud as part of its "Google first" IT strategy, focusing on unifying its global server environment on a single cloud platform (Key Developments).

9 views

Shared on 04 Feb 26

RXT: AI Services And Cloud Migrations Will Drive Future Upside Potential

Analysts have maintained their price target on Rackspace Technology at US$1.75 per share, reflecting only minor model tweaks to revenue growth, profit margin and future P/E assumptions without a material change in their overall valuation view. What's in the News Niterra EMEA GmbH selected Rackspace Technology to support a rapid migration to Google Cloud as part of its "Google first" IT strategy, consolidating three on premises data centers in Dubai, Johannesburg and Frankfurt into a single cloud platform (Client announcement).

0 views

Shared on 21 Jan 26

RXT: AI Services And Cloud Migrations Will Support Future Upside Potential

Analysts have nudged their price target for Rackspace Technology slightly higher, citing modest tweaks to long term revenue growth, profit margin and future P/E assumptions that together support a refined fair value estimate of US$1.75 per share. What's in the News Niterra EMEA GmbH selected Rackspace Technology to support a rapid migration to Google Cloud, including consolidating three on premises data centers in Dubai, Johannesburg and Frankfurt into a single cloud platform (Client announcement).

2 views

Shared on 06 Jan 26

RXT: AI And Cloud Migrations Will Support Stronger Future Earnings Potential

Analysts have nudged their price target on Rackspace Technology slightly higher to reflect small updates to projected revenue growth, profit margin, and future P/E assumptions. This has resulted in a modest increase in their assessed per share value to about US$1.75.

0 views

Shared on 14 Dec 25

Fair value Decreased 13%

RXT: AI And Cloud Wins Will Support Stronger Future Earnings Potential

Analysts have modestly raised their price target on Rackspace Technology, citing slightly stronger projected revenue growth and a lower expected future P/E multiple as key supports for their updated fair value estimate, which is moving from 1.75 dollars to 2.00 dollars despite a marginally higher discount rate. What's in the News NiterraEMEA GmbH selected Rackspace Technology to lead a rapid migration to Google Cloud, consolidating three global data centers and moving its entire SAP environment in just two months with no operational disruption (client announcement).

1 view

Valuator

Company Info

Notes

AnalystHighTarget Fair Value

US$5

17.0% undervalued

Future estimation in

Revenue

Profit Margin

Future PE

Est. Revenue

$

Forecast revenue growth rate

1.56%

Historical revenue growth rate

-2.40%

IT revenue growth rate

0.73%

Risk Level (Discount Rate)

Our default considers factors like the company's size, volatility, profitablity and country of operation.

%

0

Decrease

Increase

Current discount rate

12.46%

Calculation

US$209.98m

Earnings '29

x

9.52x

PE Ratio '29

=

US$2.00b

Market Cap '29

US$2.00b

Market Cap '29

/

281.31m

No. shares '29

=

US$7.10

Share Price '29

US$7.10 Share Price '29

Discounted to 2026 @ 12.46% p.a.

=

US$4.99

Fair Value '26