Raymond James analyst Frank Louthan IV upgraded Fastly Inc. (NASDAQ: FSLY) from Market Perform to Outperform with a price target of $23.00.

The analyst comments: “We are upgrading shares of Fastly (FSLY) to Outperform from Market Perform following 1Q results. We believe the company has seen an inflection in its operational performance and can continue to benefit from the increased demand for their network capabilities as well as related security products. Traffic increases from AI are likely to continue to benefit delivery networks with more advanced capabilities than the less dynamic do-it-yourself (DIY) CDNs some customers build for simpler traffic. Additionally, Fastly's network runs through major interconnected data centers that will capture incremental traffic as AI and inference-related traffic evolves.

We believe the selloff following 1Q26 results was in response to 1) overexuberance of the run-up following the 4Q print; and 2) a lack of understanding of what was underlying the improved results and outlook. On the second point, we believe the improvements to the business have more to do with fundamental changes to the operations by management than they do with a short-term radical business inflection from AI.”

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 $19.50 yesterday.