Rackspace Technology downgraded to Sell from Neutral at Citi

Citi downgraded Rackspace Technology to Sell from Neutral with a price target of $1.50, up from $1.25. Although Rackspace restructured to a new operating model last quarter and has hired multiple experienced industry leaders into management roles, the tough challenge is whether the company can not only pivot to growth but also achieve growth levels that attract investors in a reasonable timeframe, the analyst tells investors in a research note. Despite multiple quarters of consistently lowering forward expectations, the firm still sees downside potential to estimates from continued macro challenges and investments needed into the business.