Shares of Fastly (NYSE: FSLY) surged by more than 18% in morning trading on Monday after Bank of America Securities analyst Tal Liani upgraded the stock to a Buy from a Sell and raised the price target to $16 from $10.50.
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The analyst’s price target implies an upside potential of 34.2% at current levels.
Liani pointed out that while FSLY’s “short term results could still fluctuate,” the cloud computing company has “solid underlying foundations.” The analyst also approved of new CEO Todd Nightingale‘s measures to streamline the company’s product portfolio and improve its pricing and other business aspects.
Nightingale joined Fastly in September last year.
However, even with today’s surge, FSLY stock has not fared well in the past year, tanking by more than 60%.
