We recently compiled a list of the 12 Cheap Small Cap Stocks to Invest in Before the Next Breakout. The sixth stock on our list of best small cap stocks is Fastly, Inc.
TheFly reported on Jan. 16 that Citi analyst Fatima Boolani lowered the price target on FSLY to $10 from $12 and maintained a Neutral rating. The adjustment was made as part of Citi’s 2026 outlook for the infrastructure software group, and the company expects the sector’s momentum from 2025 to continue into the new year.
Separately, on January 5, RBC Capital raised its price target on Fastly, Inc. (NASDAQ:FSLY) to $10 from $9 and maintained a sector perform rating. According to the firm, companies that are positioned to promote the adoption of enterprise AI may experience additional AI-related tailwinds in 2026. Despite management teams’ cautious forecasts for early 2026, RBC said that enterprise investment appeared to be leveling off in several sectors, with generative AI driving innovation.
Fastly, Inc. (NASDAQ:FSLY) is an American cloud computing and edge infrastructure company that provides high-performance content delivery networks (CDN), edge computing, security, and web performance services.
While we recognize FSLY’s potential as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
READ NEXT: The 12 Best Multibagger Stocks to Buy for 2026 and the 7 Best Rising Tech Stocks to Buy Now.
Disclosure: None.