Fastly posted record Q1 results and Wall Street is starting to take notice — though not everyone is convinced the rally will last.
Raymond James upgraded FSLY to Outperform from Market Perform on Friday, with analyst Frank Louthan setting a $23 price target. The stock climbed 3.9% in early trading following the call.
Louthan pointed to what he called an “inflection” in Fastly’s operational performance. He also highlighted growing demand for the company’s network and security products as key drivers going forward.
The upgrade comes after a rough Thursday session. FSLY dropped $12.07 to close at $19.50, on volume of over 47 million — nearly four times its average. The sell-off was tied to concerns about slowing growth in Fastly’s core delivery business.
Despite the drop, Q1 numbers were hard to ignore. Security revenue grew roughly 47% in the quarter, a standout figure even as delivery deceleration worried some investors.
Citigroup moved its price target from $13 to $25 — nearly doubling it — while keeping a Neutral rating. That target implies around 28% upside from current levels.
KeyCorp went further, raising its target from $14 to $27 and assigning an Overweight rating. Evercore also initiated coverage with an Outperform rating and a $24 target back in April.
Not everyone is bullish. DA Davidson held at $13, and Royal Bank of Canada cut its target to $18 with a Sector Perform rating. The current analyst consensus sits at Hold, with an average target of $20.75.
Louthan’s note flagged AI traffic as a longer-term tailwind for Fastly. He argued that AI and inference-related traffic will favor delivery networks with advanced capabilities over simpler DIY CDN setups.
Fastly’s network runs through major interconnected data centers — a structural point Louthan said positions the company to capture incremental AI traffic as it grows.
On the insider front, CTO Artur Bergman sold 275,234 shares in early March at an average price of $20.56, reducing his position by 12.6%. Fellow insider Scott Lovett sold 73,715 shares around the same time at $21.06.
In total, insiders sold over 1.37 million shares worth roughly $28.2 million in the last 90 days. Institutional investors hold 79.71% of the stock.
Fastly’s 12-month range sits between $6.29 and $34.82, with a market cap of $3.05 billion. The stock’s 50-day moving average is $25.48, while the 200-day sits at $15.83.
The stock was trading up 3.9% Friday morning following the Raymond James upgrade.
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