Expert Outlook: Fastly Through The Eyes Of 6 Analysts
Ratings for Fastly (NYSE:FSLY) were provided by 6 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 1 | 4 | 1 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 0 | 4 | 1 | 0 |
The 12-month price targets, analyzed by analysts, offer insights with an average target of $10.08, a high estimate of $15.00, and a low estimate of $8.00. Experiencing a 42.95% decline, the current average is now lower than the previous average price target of $17.67.
Investigating Analyst Ratings: An Elaborate Study
An in-depth analysis of recent analyst actions unveils how financial experts perceive Fastly. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| James Fish | Piper Sandler | Lowers | Overweight | $10.00 | $11.00 |
| Fatima Boolani | Citigroup | Lowers | Neutral | $10.00 | $15.00 |
| Rishi Jaluria | RBC Capital | Lowers | Sector Perform | $9.00 | $18.00 |
| Rudy Kessinger | DA Davidson | Lowers | Neutral | $8.50 | $24.00 |
| Tal Liani | B of A Securities | Lowers | Underperform | $8.00 | $18.00 |
| Fatima Boolani | Citigroup | Lowers | Neutral | $15.00 | $20.00 |
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: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Fastly compared to the broader market.
- Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Fastly's stock. This comparison reveals trends in analysts' expectations over time.
To gain a panoramic view of Fastly's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
Stay up to date on Fastly analyst ratings.
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Unveiling the Story Behind Fastly
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 2023.
Financial Milestones: Fastly's Journey
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 revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 13.57%. This indicates 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 falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -32.52%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Fastly's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -4.41%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -2.87%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: Fastly's debt-to-equity ratio is below the industry average. With a ratio of 0.43, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
Analyst Ratings: What Are They?
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
This article was generated by Benzinga's automated content engine and reviewed by an editor.