- Bank of America drops Fastly (NYSE:FSLY) to an Underperform rating after having it slotted at Neutral.
- "We remain constructive on the fundamentals, yet believe the valuation bakes in near-perfect execution while risks exist," updates the firm.
- BofA says Fastly is proving to be the most expensive in its coverage universe trading at 27X FY21 EV/sales. "We believe the valuation is somewhat inflated, with further upside dependent upon the ability to expand gross margins to +60% versus FY18/FY19 gross margins of 54%/57%," reads the update.
- BofA assigns a price objective of $90 to Fastly. Shares of FSLY are down 2.84% premarket to $99.80 vs. the 52-week trading range of $10.63 to $102.85.