UPDATE: Canaccord Genuity Lowers PT on Rackspace Hosting on Remaining Downside Risks

In a report published Wednesday, Canaccord Genuity analyst Greg Miller reiterated a Hold rating on Rackspace Hosting (NYSE: RAX), but lowered the price target from $40.00 to $37.00.

In the report, Canaccord Genuity noted, “Despite recent estimate cuts, we believe additional downside risks remain given the increasing level of competition and the operating distraction we believe is resulting from the OpenStack transition. We believe aggressive competitive pricing pressures and continued momentum from competitors' cloud eco-systems will likely make the OpenStack transition increasingly difficult. We are lowering our target multiple from 10x to 9x and our price target from $40 to $37 accordingly.”

Rackspace Hosting closed on Tuesday at $39.30.