- RBC Capital analyst Rishi Jaluria downgraded Fastly, Inc (NYSE:FSLY) to Underperform from Sector Perform with a price target of $9 (22% downside), down from $17.50.
- The analyst attributed the downgrade to three primary reasons.
- Firstly, the company’s business is recession-prone due to its consumption-based model, high start-up exposure, lack of profitability, and the pricing-sensitive nature of CDN, Jaluria reasoned.
- Secondly, its CEO position remains vacant, causing an unclear turnaround path and making it harder for Fastly to catch up with Cloudflare, Inc (NYSE:NET) on the edge computing opportunity.
- Thirdly, its security portfolio lags peers, with little likelihood for changes given the near-term lack of funding (low cash balance, unprofitable, and stock down materially).
- Fastly will have to be more acquisitive to become a more serious contender in security, as per Jaluria.
- Price Action: FSLY shares traded lower by 5.41% at $11.53 on the last check Tuesday.
3 Energy Stocks With High Dividend Yields That This Hedge Fund Is Buying
Yacktman Asset Management founder Donald Yacktman was named Morningstar’s “Portfolio Manager of The Year” in 1991 and was awarded the “Portfolio Manager of the Year” by Mutual Fund Letter in 1994.
In the third quarter of 2022, Yacktman initiated a new stake in these three energy stocks with solid yields.
