Professional
Added to YB: 2026-09-03
Pitch date: 2026-08-25
RXT [bullish]
Rackspace Technology, Inc.
-9.61%
current return
Author Info
Voss Capital is a hedge fund looking for value-oriented special situations. Sign up for the newsletter.
Company Info
Rackspace Technology, Inc. operates as a hybrid cloud and artificial intelligence solutions company in the United States, the United Kingdom, and internationally.
Market Cap
$797.8M
Pitch Price
$3.32
Price Target
15.00 (+400%)
Dividend
N/A
EV/EBITDA
11.70
P/E
-4.82
EV/Sales
1.48
Sector
IT Services
Category
turnaround
Voss Value Fund New Position: Rackspace Technology, Inc.
RXT: Rackspace is a leveraged public/private-cloud and AI-infrastructure turnaround, sized at ~2%. The path toward $500-800M+ of run-rate EBITDA within two years rests on renewed Private Cloud growth, its AI strategy and Palantir partnership, and especially the 30MW AMD deployment, estimated to add $250-400M of EBITDA. At $3.42, successful execution could support $11-$15, but near-term liquidity, $2.7B of net debt and execution risk create severe-dilution downside.
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