Analysts at Investment firm Raymond James have maintained their strong buy rating on Fastly (NYSE:FSLY) despite reports that the company’s Q3 revenue could be lower than expected. The cloud computing services provider’s Q3 report card will be revealed on November 1.
Before that happens, analyst Frank Louthan has reduced his revenue expectations for the company. Louthan said Fastly had a quiet September in terms of traffic, which impacted its performance in the month. Nonetheless, he said the company’s longer-term picture looks good.
With the third quarter rounding up, Louthan said the revenue for the quarter will be $2.6 million short of estimates. The analyst has adjusted his estimates from a prior $126.8M to $124.2M. Furthermore, Louthan dropped his full-year estimate from $509.6M to $506.5M.
Louthan added that Signal Sciences could offset some of the revenue gaps at Fastly, predicting that pricing could be better than anticipated. He also added that recent activities of the company and the appointment of a new CEO could help improve the company’s performance.
What is the Price Target for Fastly?
Turning to Wall Street, analysts have a Hold consensus rating on Fastly stock based on two Buys, four Holds, and two Sells assigned in the past three months, as indicated by the graphic above. Nevertheless, the average price target of $17.13 per share implies 7.40% upside potential.
