Raymond James Turns Bullish On Fastly, Cites Recent Pullback As 'Overreaction'

Raymond James upgraded Fastly Inc FSLY, noting shares overreacted to management's recently issued 2022 revenue guidance.
Analyst Frank Louthan raised his rating to Strong Buy from Outperform.
Louthan noted that the recent decline in shares is likely due to revenue guidance provided by management, with bears believing it "is a sign that some mix of pricing and volume are weakening, and management lacks confidence in the business."
Meanwhile, the analyst lowered the price target to $35 from $42, implying an upside of 85%.
His tracker indicates Fastly's Q4 strength continued, and his conversations with management do not indicate any fundamental weakness or significant concerns for 2022. Fastly exited the year going into Q1 at much stronger rates of growth, Louthan noted.
Price Action: FSLY shares traded lower by 1.43% at $18.93 on the last check Friday.

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