Fastly upgraded to Buy from Neutral at DA Davidson

DA Davidson upgraded Fastly to Buy from Neutral with a price target of $17, up from $8.50. The company’s Q4 results "beat all around," and importantly, gross margins were ahead of expectations for the second straight quarter, the analyst tells investors in a research note. The firm believes new CEO Todd Nightingale has brought a renewed focus on "operational rigor," capital efficiency, and streamlined product packaging. While the shares likely need to "cool off near-term" following an 85% run over the last 1.5 months, they are set up to outperform over the next 12-18 months, contends Davidson.