Where Fastly Stands With Analysts

Fastly, Inc. -1.27%

Fastly, Inc.

FSLY

6.99

-1.27%

During the last three months, 4 analysts shared their evaluations of Fastly (NYSE:FSLY), revealing diverse outlooks from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 0 3 0 0
Last 30D 1 0 0 0 0
1M Ago 0 0 0 0 0
2M Ago 0 0 1 0 0
3M Ago 0 0 2 0 0

In the assessment of 12-month price targets, analysts unveil insights for Fastly, presenting an average target of $19.0, a high estimate of $20.00, and a low estimate of $18.00. Observing a 11.76% increase, the current average has risen from the previous average price target of $17.00.

price target chart

Exploring Analyst Ratings: An In-Depth Overview

The analysis of recent analyst actions sheds light on the perception of Fastly by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Tal Liani B of A Securities Lowers Buy $18.00 $28.00
Jeff Van Rhee Craig-Hallum Announces Hold $20.00 -
Fatima Boolani Citigroup Raises Neutral $20.00 $11.00
Rishi Jaluria RBC Capital Raises Sector Perform $18.00 $12.00

Key Insights:

  • Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Fastly. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Fastly compared to the broader market.
  • Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Capture valuable insights into Fastly's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Fastly analyst ratings.

If you are interested in following small-cap stock news and performance you can start by tracking it here.

Delving into Fastly's Background

Fastly operates a content delivery network, which is necessary for entities to provide faster and more reliable online content. Fastly's strategy differs from traditional CDNs, which focus on locating servers in as many locations as possible to store copies of files that consumers most use. Fastly is in far fewer sites than traditional CDNs, but it houses servers in the most network-dense data centers. Instead of simply storing static content, it allows its customers to program on its platform, enabling edge computing and better service of the more dynamic content that was traditionally not well served by CDNs. Fastly gears its service to the largest, most sophisticated enterprises rather than small companies and generated nearly three fourths of its revenue in the United States in 2022.

Fastly: Financial Performance Dissected

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Fastly's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 15.47%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Fastly's net margin is impressive, surpassing industry averages. With a net margin of -16.97%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of -2.4%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Fastly's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of -1.48%, the company showcases efficient use of assets and strong financial health.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.44.

Understanding the Relevance of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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