RBC Capital analyst Daniel Perlin raised the firm's price target on Rackspace to $4 from $2.50 and keeps a Sector Perform rating on the shares after the company entered into a pact for deployment of initial 30 MW footprint with AMD. The 30 MW AMD compute deployment validates Rackspace strategy to become the governed enterprise AI operator for regulated industries, with both leveraging their existing infrastructure and power capacity while moving up stack from Bare Metal to Enterprise AI Cloud, the analyst tells investors in a research note. The combination also positions Rackspace to capture meaningful market share in healthcare, financial services, energy, and government sectors, the firm added.
