Oppenheimer Updates RAX Estimates

Oppenheimer is modestly raising its Rackspace Hosting, Inc. (NYSE: RAX) estimates for 2010/2011 and introducing forecasts for 2012.

“Our '12E revenue ($1,093M) and adj. EBITDA ($386M) stand just below consensus at $1,176M/$408M, respectively,” Oppenheimer writes. “While it appears that business trends continue to stabilize within key customer segments, we believe that much of the upside is already incorporated into forecasts.”

Oppenheimer also downgraded RAX to Perform from Outperform.

Rackspace Hosting currently trades at $31.39.