More on Pac Crest's downgrade of Rackspace (RAX -1.1%): Analyst Michael Bowen gives shares a...

|About: Rackspace Hosting, Inc. (RAX)|By:, SA News Editor
More on Pac Crest's downgrade of Rackspace (RAX -1.1%): Analyst Michael Bowen gives shares a "fair value estimate" of $45, and thinks enterprise OpenStack cloud infrastructure clients "will demand price concessions for larger or longer commitments and compress margins." He also makes note of Rackspace's embrace of tiered pricing for OpenStack services, an element of its recent price cuts.