Raymond James Just Upgraded Fastly to Outperform: AI Traffic Inflection Powers $23 Price Target

1 hour ago 1

David Moadel

Fri, May 8, 2026 astatine 9:41 AM CDT 4 min read

Quick Read

Fastly (FSLY) was upgraded to Outperform with a $23 terms people by Raymond James aft a 38% single-day decline, with Q1 gross increasing 20% year-over-year to $173.02M, Security gross up 47%, and recurring gross (RPO) up 63% to $369M.
Piper Sandler simultaneously maintained a Hold standing connected FSLY stock, creating a crisp expert divided connected whether the 4th represents an inflection constituent oregon a thesis crack.
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Shares of Fastly (NYSE:FSLY) conscionable earned a beardown endorsement from Raymond James, which upgraded the borderline unreality level to Outperform from Market Perform with a $23 terms target. The telephone lands successful the aftermath of a 38% one-day diminution that followed an in-line quarter, making this a intelligibly contrarian view. Raymond James argues the marketplace overreacted and that an AI-driven postulation inflection is the ascendant longer-term theme.

The divided with peers is the story. Piper Sandler reiterated a Hold connected Fastly banal the aforesaid week, framing the 4th arsenic a thesis ace alternatively than a setup. For broader discourse connected however analysts are positioning astir AI infrastructure names, spot our caller sum of AI infrastructure expert upgrades.

Ticker

Company

Firm

Action

Old Rating

New Rating

Old Target

New Target

FSLY	Fastly	Raymond James	Upgrade	Market Perform	Outperform	n/a	$23

The Analyst's Case

Raymond James believes Fastly has reached an "inflection" successful operational performance, with rising request for its web capableness and information products. The steadfast sees AI-driven postulation increases continuing to payment transportation networks with much precocious capabilities.

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Crucially, the expert points to structure. Fastly's web runs done large interconnected information centers positioned to seizure incremental AI and inference-related postulation arsenic those workloads scale, an architectural moat the steadfast is consenting to underwrite astatine $23.

Company Snapshot

Fastly operates an borderline unreality level spanning Network Services, Security, and Compute & Observability. In Q1 2026, gross grew 20% twelvemonth implicit twelvemonth to $173.02 million, with Security up 47% and Compute & Observability up 67%.

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