Should You Buy Rackspace Technology Inc (RXT) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Hold
Latest Price
0.640
1 Day change
-10.56%
52 Week Range
3.030
Analysis Updated At
2026/01/26
Rackspace Technology Inc (RXT) is not a good buy for a beginner investor with a long-term strategy at this time. The stock shows weak financial performance, bearish technical indicators, and lacks positive catalysts. Additionally, there are no significant trading signals or influential figures supporting the stock currently.
Technical Analysis
The technical indicators for RXT are bearish. The MACD is negative and expanding downward, the RSI is at 15.506 indicating an oversold condition, and the moving averages show a bearish pattern (SMA_200 > SMA_20 > SMA_5). The stock is trading below key support levels, with S1 at 0.827 and S2 at 0.766.
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
The low put-call ratios indicate a lack of significant bearish sentiment, but overall options activity is low, suggesting limited interest in the stock.
Technical Summary
Sell
10
Buy
6
Positive Catalysts
NULL identified. There are no recent news events, positive financial trends, or significant trading signals to support a buy decision.
Neutral/Negative Catalysts
Additionally, the stock's technical indicators are bearish, and there is no recent activity from insiders, hedge funds, or influential figures.
Financial Performance
In Q3 2025, Rackspace Technology's revenue dropped by -0.68% YoY to $671.2M. Net income fell significantly by -64.04% YoY to -$67.1M, and EPS dropped by -65.85% YoY to -$0.28. Gross margin also declined by -4.91% YoY to 19.35%.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
No recent analyst ratings or price target changes are available for RXT.
Wall Street analysts forecast RXT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RXT is 1.48 USD with a low forecast of 1.3 USD and a high forecast of 1.75 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
Wall Street analysts forecast RXT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RXT is 1.48 USD with a low forecast of 1.3 USD and a high forecast of 1.75 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
3 Hold
0 Sell
Hold
Current: 0.710
Low
1.3
Averages
1.48
High
1.75
Current: 0.710
Low
1.3
Averages
1.48
High
1.75
Raymond James
Frank Louthan
Outperform -> Market Perform
downgrade
AI Analysis
2025-06-02
Reason
Raymond James
Frank Louthan
Price Target
AI Analysis
2025-06-02
downgrade
Outperform -> Market Perform
Reason
Raymond James analyst Frank Louthan downgraded Rackspace Technology to Market Perform from Outperform without a price target. Rackspace performed in line to ahead of Q1 estimates with strong bookings and issued positive Q2 guidance as the "ship continues turning," but the path to improved growth and free cash flow is longer than anticipated, the analyst tells investors in a research note. The firm believes the company's shift to larger contracts will also take more time for the company to adjust to. As such, it believes a Market Perform rating is more appropriate.
RBC Capital
Sector Perform
downgrade
$3 -> $2
2025-05-12
Reason
RBC Capital
Price Target
$3 -> $2
2025-05-12
downgrade
Sector Perform
Reason
RBC Capital lowered the firm's price target on Rackspace Technology to $2 from $3 and keeps a Sector Perform rating on the shares. The company reported solid results with beats across both the top and bottom line, marking the company's 11th consecutive quarter of meeting or exceeding guidance, the analyst tells investors in a research note. Rackspace has a solid foundation to turnaround the company's operations, RBC adds.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for RXT
