First Read: Rackspace Technology Inc "Middle East Regional HQ amid AI Momentum"

Research evidence excerpt

First Read: Rackspace Technology Inc "Middle East Regional HQ amid AI Momentum"

Global Research

11 June 2026ab

First Read

EquitiesRackspace Technology Inc

Middle East Regional HQ amid AI Momentum United States

Software

12-month rating Neutral *

Regional Expansion to Drive Cloud and AI Growth

As evidenced by an almost 445% rally YTD, Rackspace continues building momentum 12m price target US$5.50

as evidenced by news it is establishing regional headquarters in Riyadh—Saudi Arabia Prior : US$5.00

—to accelerate cloud and AI growth. We see this as another sign of increased demand

Price (10 Jun 2026) US$5.29

for Rackspace's enterprise cloud adoption across the region. The Riyadh regional

headquarters expected to serve as a strategic hub for Technology Operations and RIC: RXT.O BBG: RXT US

customer engagement efforts. We believe this could help accelerate digital Trading data and key metrics

transformation across enterprise, government, and regulated industries. Importantly,

52-wk range US$7.29-0.41

this follows recent alliances—including Palantir to drive enterprise adoption of

Market cap. US$1.20b

Palantir's Foundry and Artificial Intelligence Platform + AMD establishing a new

Shares o/s 228m (COM)

category of governed Enterprise AI Cloud infrastructure for regulated and sovereign

workloads. While we are encouraged Rackspace is shifting to AI implementation and a Free float 23%

managed services partner from commodity cloud infrastructure provider, we are Avg. daily volume ('000) 19,123

Neutral-rated amid limited near-term revenue contribution and an uncertain Avg. daily value (m) US$78.8

environment. Common s/h equity (12/26E) US$-1.33b

P/BV (12/26E) NM

Double clicking on Saudi Arabia Expansion Net debt to EBITDA (12/26E) 9.2x