Fastly downgraded to Hold at Craig-Hallum after ‘concerning’ quarter

As previously reported, Craig-Hallum downgraded Fastly to Hold from Buy with a $20 price target after the company posted weaker numbers for the quarter and gave Q1 guidance that “was also weak.” Explanations for the weakness were “very limited,” generally pointing to international softness, while color on key drivers for an expected second half acceleration was “also limited,” the analyst tells investors. The firm had upgraded shares last February on a belief the business had bottomed, which “in fact turned out to be the case,” but this quarter was “concerning on a number of fronts” so the firm is stepping aside while it awaits another more compelling risk/reward situation to get more bullish, the analyst added.