Craig-Hallum Downgrades Fastly Inc. (FSLY) to Hold, 'Mixed Quarter And Outlook Driven By International Weakness'

Craig-Hallum analyst Jeff Van Rhee downgraded Fastly Inc. (NYSE: FSLY) from Buy to Hold, PT $20.00.

The analyst comments "FSLY posted weaker numbers for the quarter, missing despite $2.8M of unexpected one-time revenue. Q1’24 guidance was also weak, yet the company bracketed the street revenue outlook for the year and was ahead on profitability, implying notable top line acceleration in the back half. Explanations for the weakness were very limited, generally pointing to international softness, while color on key drivers for H2’24 acceleration was also limited. RPO was exceptionally weak and Gross Margin expansion continues to be more difficult to come by than management thought earlier in ’23. In sum, we upgraded in Feb’23 on our belief the business had bottomed. That in fact turned out to be the case and we’ve seen relatively steady progress since with the stock running up nicely to 5.7x revenues. However, this quarter was concerning on a number of fronts and we are stepping aside to a more cautious stance and will await another more compelling risk/reward situation to get more bullish."

For an analyst ratings summary and ratings history on Fastly Inc. click here. For more ratings news on Fastly Inc. click here.

Shares of Fastly Inc. closed at $23.54 yesterday.

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