Oppenheimer Just Upgraded Fastly Stock. Here's Why.

Fastly (FSLY) shares pushed sharply higher on Oct. 9 after Oppenheimer turned bullish on the company’s security business and emerging artificial intelligence (AI) opportunity. Analyst Param Singh upgraded FSLY this morning to “Outperform” and announced a $35 price target, indicating potential upside of about 40% on its previous close.   

The bullish call is significant, given that Fastly stock is already trading at nearly 3x its price at the start of this year. 

Why Oppenheimer Upgraded Fastly Stock

Singh’s upgrade rests partly on industry checks indicating that Fastly’s average deal sizes increased during the third quarter as customers added newer security products.

According to Singh, security cross-selling is proving an increasingly meaningful growth driver for the Nasdaq-listed firm; rather than relying exclusively on additional network traffic, it’s generating more business by selling existing customers a broader range of services.

Oppenheimer expects Q3 revenue to come in at the upper end of management’s guided range ($184 million to $190 million). The investment firm believes cross-selling momentum and expected contribution from the release of Grand Theft Auto VI will lead management to raise full-year guidance as well.

AI Tailwinds to Drive FSLY Shares Higher

Oppenheimer’s other major argument is premised on early monetization of agentic AI traffic. 

Its recent channel checks suggest this traffic increased in Q3 and is expected to retain momentum in the fourth quarter. In fact, that trend is supporting network activity and adoption of Fastly’s bot management capabilities, Singh told clients. 

He sees FSLY as strongly positioned to sustain annual growth in the “high teens to low twenties” over the next several years. 

Fastly shares have a history of gaining near 15% on average in November — a seasonal pattern that makes it even more attractive to own in the near term. 

Wall Street Remains Bullish on Fastly

Other Wall Street analysts seem to agree with Singh’s bullish stance on FSLY shares as well. 

According to Barchart, the consensus rating on Fastly sits at “Moderate Buy” currently, with price targets going as high as $37, indicating potential for a significant further rally from here. 

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.