Oppenheimer flags risks to Rackspace from macro headwinds, high debt

Rackspace Technology

08/04/2022 12:16

** Shares of cloud tech provider  RXT.O  slips 3.5%
premarket, set to open at two-week low of $10.57 if losses hold
    ** Oppenheimer downgrades to "perform" from "outperform",
says adding high-margin services takes time
    ** "Company is going through a strategic review, which we
expect to lead to more investment, as we are in the early cycle
of very strong cloud growth, but Rackspace could decide to sell
parts of the company, or all of it" - Oppenheimer 
    ** Says increased macro headwinds and very high debt warrant
caution
    ** Stocks down 18.7% YTD, as of last close

 (Reporting by Susan Mathew)
 ((susan.mathew@thomsonreuters.com))