DA Davidson cut its 12-month price target for Fastly from $11.50 to $9, representing a 21.7% downward revision of the firm’s valuation estimate. The move marks one of the steeper reductions among analysts, reflecting updated assumptions on the company’s financial trajectory.

The revised target underscores a more cautious outlook on Fastly’s revenue growth and margin expansion as the edge cloud market evolves. Investors will monitor client acquisition rates and cost efficiencies closely to determine if Fastly can meet these tempered expectations.