Shares of Fastly Inc. (FSLY) sank 5.8% in morning trading, putting them on track to snap a streak of 3-straight record closes, after BofA Securities analyst Tal Liani swung to bearish from bullish on provider of real-time content delivery network services, citing valuation concerns. The stock has rocketed nearly fivefold (up 382%) year to date, compared with a 2.3% decline in the S&P 500 , as investors view the company as a COVID-19 beneficiary. Liani downgraded Fastly to underperform from buy, but raised its stock price target to $90, which is 6.9% below current levels, from $50, saying that while fundamentals are intact, valuation has become difficult to justify after the this year's run up. He said Fastly's new initiatives may take time to materialize, and "risks around execution and competition remain and are not reflected in the current valuation."
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
July 10, 2020 11:01 ET (15:01 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.