Rackspace CEO: Watch Us Grow:
Rackspace CEO Lanham Napier tells reporter Robert Holmes that though his company is trading at half its August IPO price, new data centers overseas will help the Web hosting business grow.

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Savvis (SVVS) was downgraded to Hold rating from Buy at Jefferies. Price target slashed to $20 from $30 and FY 2008 eps drops to $(0.42) from break even.

Goldman said it is downgrading SVVS to Neutral from Buy based on continuing capital intensity and longer sales cycle. Note that customers have been reluctant to move beyond basic collocation. Price target cut to $18 from $28.

undervalued

Outperform - Price 21.15 on Feb. 5
by Cowen & Co.

[Telecommunications firm] Savvis' expansion remains on track. We look for substantial outperformance as Ebitda accelerates throughout the year. SVVS management reported seeing no signs of demand weakness related to the slowing economy....Trading at only 7.7 times '08 estimated Ebitda, current level [appears to be] an excellent entry opportunity. Our [discounted cash flow] indicates 70% outperformance potential versus the market over the next 12 months, implying 9.3 times 2009E Ebitda. Market-cap: $1.2 billion

BUY

Upgraded by Kaufman Brothers from Hold to Buy

PT 59

high-quality networks become more important as higher range of services offered to customers

SAVVIS, Inc. provides information technology services primarily in the United States. The company offers various services, including managed IP VPN, hosting, digital content services, network services, industry solutions, and professional services.

Local company

ex-CEO Rob McCormick's night out at Scores gave the company a black eye