Why Fastly (FSLY) Stock Is Having Its Best Week in Months

TLDR

• Oppenheimer upgraded Fastly to Outperform from Perform, lifting its price target to $35.
• FSLY stock jumped more than 16%, trading near $25.29 on the news.
• The upgrade points to growing contract values and rising demand for Fastly’s security products.
• Analyst Param Singh expects high-teens to low-20s growth for Fastly over the next few years.
• Wall Street holds a Moderate Buy rating on the stock, with 11 analysts recently raising earnings estimates.

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Fastly stock climbed more than 16% after Oppenheimer upgraded the company to Outperform from Perform. The stock traded around $25.29 at the time, well below the firm’s new $35 price target.

Fastly, Inc., FSLY

Analyst Param Singh made the call based on industry checks. He found growing contract values tied to rising demand for Fastly’s security products.

Singh ranks No. 849 out of more than 12,500 analysts tracked by TipRanks. His calls have landed correctly 66% of the time, with an average return of 24%.

Fastly has had a strong run this year. The stock is up 148% year-to-date and has returned 196% over the past twelve months.

Why Oppenheimer Turned Bullish

Singh pointed to an increase in average deal size during the third quarter. New security product launches helped drive this cross-selling trend.

The company has rolled out several new tools recently. These include AI Runtime, AI Firewall, and API Enforcement, which became generally available in September.

These products haven’t added much to revenue yet. But Singh expects the expanding security lineup to keep fueling growth into the fourth quarter and through 2027.

Oppenheimer expects high-teens to low-20s growth for Fastly over the coming years. The firm believes this pace is underappreciated by the broader market at current price levels.

For the third quarter, Singh expects Fastly to post revenue near the top of its guided range. That range runs from $184 million to $190 million.

He also expects management to raise full-year 2026 guidance. The boost would come from continued cross-selling and extra traffic tied to the release of GTA VI.

What Other Analysts Are Saying

Not every analyst shares Oppenheimer’s enthusiasm. RBC Capital kept a Sector Perform rating with a $25 price target following Fastly’s investor day.

At that event, Fastly laid out targets through fiscal year 2029. Those include a revenue growth rate of 14% to 21% per year.

DA Davidson maintained a Neutral rating but trimmed its price target to $23 from $26, citing valuation concerns. BofA Securities moved the other direction, raising its target to $22 from $20.

BofA pointed to Fastly’s push toward a unified edge platform. The firm also noted three straight quarters of steady revenue growth.

There has also been chatter online about Fastly’s potential role in handling traffic for Meta’s Muse AI assistant. That speculation has added to investor interest in the stock.

Overall, Wall Street rates Fastly a Moderate Buy. The consensus is built on six Buy ratings, five Holds, and one Sell.

The average price target across analysts sits at $28.56. That implies a 3% downside from current trading levels, even after the latest pop.

Eleven analysts have raised their earnings estimates for the upcoming period, according to InvestingPro data. The company has not turned a profit over the past twelve months, though analysts expect that to change this year.

Fastly shares have gained 188% since the start of the year as of Friday’s trading session.