Fastly price target raised to $11 from $9 at RBC Capital

RBC Capital analyst Rishi Jaluria raised the firm’s price target on Fastly to $11 from $9 but keeps an Underperform rating on the shares. The company’s outlined growth drivers as part of its medium-term outlook seem encouraging, with broadening opportunity, enhanced product innovation, and packaged offerings), the firm remains cautious as Fastly remains #3 in a low-growth market with persistent pricing pressure and potential for ongoing initiatives to take time to drive substantial change, the analyst tells investors in a research note. Maintaining 600 bps of annual margin improvement might be challenging while balancing growth acceleration aspirations, RBC added.