Fastly (FSLY) shares are in the spotlight as the company’s market-beating Q2 financials and upbeat future guidance made at least two Wall Street analysts raise their price targets on the stock.
Still, investors are bailing on FSLY on concerns that its quarterly strength stems from a temporary live-events-driven increase in traffic rather than durable, ongoing demand.
Plus, the earnings release revealed some softness in remaining performance obligations (RPOs), and compute revenue is hurting Fastly stock as well. FSLY stock is now down roughly 35% versus its April high.
Why Evercore ISI Recommends Buying Fastly Stock
In a note to clients, Evercore ISI analyst Peter Levine downplayed the aforementioned concerns, framing FSLY shares’ pullback as an overreaction to routine operational noise.
According to Levine, the RPO weakness was due to “the timing and duration of several large contracts — creating quarter-over-quarter lumpiness.”
Moreover, management confirmed that live events like the FIFA World Cup resulted in a modest tailwind of less than $5 million only, proving the firm’s core Q2 growth wasn’t artificially inflated.
Evercore ISI maintained its “Outperform” rating on Fastly, with a $32 price objective indicating potential upside of about 45% from current levels.
KeyBanc Also Remains Bullish on FSLY Shares
KeyBanc analysts also recommend buying the post-earnings dip in Fastly shares today, believing they are strongly positioned to hit $30 over the next 12 months.
The firm’s optimism stems from management’s commentary of a stable pricing environment, where mid-single-digit price cuts were comfortably offset by traffic growth in the low 20s.
Investors should also note that FSLY is currently trading at a price-to-sales (P/S) multiple of about 6x, which makes it notably cheaper to own than rival Cloudflare (NET), at more than 49x.
That said, San Francisco-headquartered Fastly does not currently pay a dividend.
How Wall Street Recommends Playing Fastly
While not nearly as bullish as Evercore ISI and KeyBanc, other Wall Street firms also expect FSLY stock to push higher in the back half of 2026.
The consensus rating on Fastly remains at “Moderate Buy,” with the mean price target of $24.36 indicating potential upside of nearly 8% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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