Analyst Ratings For Fastly

5 analysts have expressed a variety of opinions on Fastly FSLY over the past quarter, offering a diverse set of opinions from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $7.4, a high estimate of $10.00, and a low estimate of $6.00. This current average has decreased by 33.93% from the previous average price target of $11.20.

Exploring Analyst Ratings: An In-Depth Overview

A clear picture of Fastly's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Fastly. This information offers 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 navigate through adjustments in price targets, providing estimates for Fastly's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

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.

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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.

Key Indicators: Fastly's Financial Health

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Positive Revenue Trend: Examining Fastly's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 7.77% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: Fastly's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -33.04%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Fastly's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -4.43% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Fastly's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -2.93%, the company may face hurdles in achieving optimal financial returns.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.43.

The Significance of Analyst Ratings Explained

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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