Fastly upgraded to Equal Weight from Underweight at Morgan Stanley

Morgan Stanley upgraded Fastly to Equal Weight from Underweight with a price target of $18, up from $12. While the durability of the company’s long-term growth remains a question, Fastly management is executing on key priorities, including improving gross margins, prioritizing investment in security to support long-term growth, and finding areas of leverage in operating expenditures, the analyst tells investors in a research note. In the near term, the firm expects share gains in Fastly’s core content delivery to continue given its performance advantage and because large players such as Akamai appear less interested in competing on price.