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Fly News Breaks for March 31, 2016
RAX
Mar 31, 2016 | 07:41 EDT
As previously reported, CLSA downgraded Rackspace to Sell from Underperform. Analyst Louis Miscioscia, commented on unconfirmed news stores in the press yesterday that suggested Rackspace is up for sale. The analyst believes a sale is unlikely hyperscale vendors have a different data center architecture that is not compatible with Rackspace's, making integration difficult. Besides the integration, hyperscale vendors don't need what Rackspace offers, and the major players are already far behind and not likely wanting to invest billions to try to catch up, Miscioscia said.
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