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Fastly upgraded to Outperform at Oppenheimer amid CDN consolidation
The Fly

Fastly upgraded to Outperform at Oppenheimer amid CDN consolidation

As previously reported, Oppenheimer upgraded Fastly to Outperform from Perform with a $12 price target. Akamai (AKAM) recently received court approval for the purchase of about one-third of Edgio’s customer contracts, or about $100M, and the firm expects Fastly (FSLY) to capture $40M of revenue, the analyst tells investors. Following the shutdown of Edgio, the Content Delivery Network space has consolidated to three players from six previously, removing another price competitor and making CDN a “more attractive market,” the analyst tells investors. Fastly should benefit from Edgio’s bankruptcy at that same time that Internet volumes and pricing are improving, the analyst added.

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