Fastly ( NYSE: FSLY ) shares surged by 10% in pre-market trading Monday after Bank of America Securities analyst Tal Liani upgraded the cloud-services tech company due to a handful of factors such as the efforts of its new management team.
Liani lifted Fastly ( FSLY ) all the way from underperform, or sell, up to buy, and boosted his price target on the company's stock to $16 a share from $10.50. Liani said that while Fastly's ( FSLY ) "short term results could still fluctuate," the company has "solid underlying foundations", and new Chief Executive Todd Nightingale has taken steps to streamline its product portfolio, pricing and other business aspects.
Nightengale joined Fastly ( FSLY ) in September 2022 from Cisco Systems (CSC0), and has instituted a companywide turnaround strategy that includes more focus on core strengths and moving into network security.
Liani said that Fastly ( FSLY ) core technology and network products need to be "sharpened", but "could serve as a solid foundation for the other adjacent services" that the company offers.
Wall Street analysts have a consensus hold rating on Fastly's ( FSLY ) stock, while Seeking Alpha authors give the shares a rating of buy Seeking Alpha's Quant System, which historically outperforms the stock market, gives Fastly ( FSLY ) a rating of hold.
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Fastly shares surge 10%; BofA boosts rating all the way to buy