2020-10-23 06:03:30 | Piper downgrades Fastly to Underweight with TikTok becoming 'bigger issue'Piper Sandler analyst James Fish downgraded Fastly to Underweight from Neutral with a price target of $65, down from $84. Despite the pullback in shares in the last week, the market "is still not factoring enough risk," Fish tells investors in a research note. The analyst's research affirms TikTok will become a "bigger issue" for Fastly over the next year than the market believes, as it is "rapidly building" its own content delivery network. In addition, Fastly faces other issues including a slowdown at Amazon (AMZN) and tough compares in the first half of 2021, adds the analyst. Fish believes the company's fundamentals and risks are not appropriately reflected in the stock at these levels. | |
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