
RXT Stock Forecast & Price Target
RXT Analyst Ratings
Bulls say
Rackspace Technology Inc. has demonstrated significant growth in its Private Cloud segment, with bookings increasing 24% quarter-over-quarter and 42% year-over-year, highlighting robust demand across various industries such as healthcare, BFSI, and telecom. Management anticipates an improvement in free cash flow (FCF) in the second half of the year, driven by higher adjusted EBITDA and enhanced working capital performance, despite the impact of one-time vendor prepayments in the first half. Additionally, the company’s upside case suggests potential for further revenue growth and margin expansion, reinforcing a positive outlook on its financial trajectory.
Bears say
Rackspace Technology Inc. has exhibited a concerning trend with management guiding towards a total revenue decline of approximately 1% year-over-year, a revision from a previous estimate of a 2.4% decline, indicating weakening growth expectations. Specifically, the company's Public Cloud segment is projected to decrease by 0.3% year-over-year, while the Private Cloud segment is anticipated to experience a more significant decline of 3.0% year-over-year. Additionally, future projections for FY2026 suggest a potential reduction of 150 basis points in revenue growth and a decrease of 50 basis points in operating margins, further highlighting the challenges the company may face in maintaining its financial performance.
This aggregate rating is based on analysts' research of Rackspace Technology, Inc. and is not a guaranteed prediction by Public.com or investment advice.
RXT Analyst Forecast & Price Prediction
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