RBC Capital analyst Jonathan Atkin this morning lifted his rating on Rackspace (RAX) to Outperform from Sector Perform, increasing his price target to $23, from $22. He lifts his 2010 EBITDA forecast for the Web hosting service to $261.8 million from $245.2 million; his revenue forecast goes to $782 million, from $752 million.

“Our recent discussions with management and industry contacts provide us with added confidence in the company’s revenue growth prospects at stable-to-modestly increasing margins,” he writes in a note.

RAX is up 24 cents, or 1.3%, to $18.99.

Article courtesy of BARRONS.com: Tech Trader Daily