Fastly ( NYSE: FSLY ) shares dipped in early trading on Thursday even as investment firm Craig Hallum upgraded the cloud platform developer after it reported strong fourth-quarter results and guidance.
Analyst Jeff Van Rhee raised his rating on Fastly ( FSLY ) shares to buy from hold and raised his per-share price target to $17 from $9, pointing out that the company looks to be settling into a groove.
"After several years of disruption, the business feelas though it is selling into a more predictable/manageable growth path," Van Rhee wrote.
Van Rhee added that network costs and capital expenditures are coming down, gross margins are rising and the company is back to beating expectations and raising guidance.
"We believe shares have put in a bottom and will rise as [2023] progresses," Van Rhee added.
Fastly ( FSLY ) said that for its fiscal first-quarter, it expects to report a loss of between 8 cents and 12 cents a share, excluding one-time items, on revenue in a range of $114M to $117M.
For its fourth quarter, Fastly ( FSLY ) reported a loss of 8 cents a share on revenue of $119.3M. Wall Street analysts had forecast the company to lose 13 cents a share, on $114.6M in sales.
Earlier this week, Fastly ( FSLY ) shares surged after Bank of America upgraded the stock to buy and raised its price target .
Analysts are overwhelmingly cautious on Fastly ( FSLY ). It has a HOLD rating from Seeking Alpha authors , while Wall Street analysts rate it a HOLD . Additionally, Seeking Alpha's quant system, which consistently beats the market, rates FSLY a HOLD .
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Fastly dips even Craig Hallum upgrades after strong Q4, outlook