FSLY - Fastly's Near-Term Risks Include Challenges with Top Customers Analyst Expresses Concern | Benzinga
B of A Securities analyst Tal Liani downgraded Fastly Inc (NYSE:FSLY) from Buy to Underperform and lowered the price target from $18 to $8.
On Wednesday, Fastly reported quarterly sales of $133.52 million, up by 13.6% year-on-year, which marginally beat the analyst consensus estimate of $133.1 million. EPS loss of $(0.05) beat the analyst consensus estimate loss of $(0.06). The stock price plunged on Thursday.
Near-term risks outweigh the longer-term positive catalysts, as per Liani.
Decelerating growth in Fastly’s largest customers, share loss in delivery, and limited visibility in the second half caused the analyst to question a rebound in 2024.
While Liani continues to like Fastly’s positioning in the edge compute market, he noted it as a 2025 opportunity instead of a near-term growth driver.
The risk factors could prompt further downward revisions to guidance, which, according to the analyst, may keep ...