Recently, Fastly Inc (Symbol: FSLY) experienced a significant shift in its trading price, climbing past the average analyst 12-month target of $8.94, currently trading at $9.45 per share. When a stock reaches an analyst’s target price, there are typically two possible reactions: a downgrade based on valuation concerns or an upward adjustment of the target price. The choice often hinges on the company’s underlying performance—positive developments could warrant a higher estimate.
Understanding Analyst Targets and Reactions
Analysts from the Zacks coverage universe have set nine different price targets for Fastly, showcasing a wide range of opinions. On the lower end, one analyst predicts a price of $5.00, while another sets a much more optimistic target of $15.00. The standard deviation of these targets stands at $2.811, indicating varied expectations among analysts.
The Value of Collective Insight
The average price target for FSLY is valuable because it amalgamates the insights from multiple analysts, rather than relying solely on a single opinion. With FSLY now trading above the average target, investors are prompted to reconsider their stance: is $8.94 merely a stepping stone towards a higher target, or is the valuation too steep, suggesting the need to take profits? The following table summarizes the current assessment of analysts covering Fastly Inc:
Recent FSLY Analyst Ratings Breakdown | ||||
---|---|---|---|---|
» | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
Strong buy ratings: | 1 | 1 | 0 | 0 |
Buy ratings: | 0 | 0 | 0 | 0 |
Hold ratings: | 9 | 9 | 10 | 10 |
Sell ratings: | 1 | 1 | 1 | 1 |
Strong sell ratings: | 0 | 0 | 0 | 0 |
Average rating: | 2.91 | 2.91 | 3.09 | 3.09 |
The average rating above ranges from 1 to 5, where 1 is Strong Buy and 5 is Strong Sell. This analysis utilizes data provided by Zacks Investment Research via Quandl.com. For the latest insights, consider checking the Zacks research report on FSLY—available free of charge.
The Top 25 Broker Analyst Picks of the S&P 500 »
Also see:
STJ Price Target
SBIG Videos
Funds Holding BBIO
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.