Fastly stock climbed nearly 5% in premarket trading

Fastly stock climbed nearly 5% in premarket trading after Raymond James upgraded the company.

Raymond James analyst Frank Louthan upgraded Fastly Inc to Outperform from Market Perform with a $42 price target, implying 15.2% upside.

• Louthan says that the shares are about two points off the 52-week low and 20% below the 50-day moving average, with a recent uptick in short interest.
• However, Raymond James' propriety tracking tool suggests another sequential uptick in traffic and that Fastly should beat the high end of its revenue outlook, Louthan adds.
• This is a "recipe for near-term share price appreciation," says the analyst.
• Fastly operates a content delivery network (CDN), which enables entities to provide faster and more reliable online content.