Fastly price target raised to $10 from $7.50 at Piper Sandler

Piper Sandler raised the firm’s price target on Fastly (FSLY) to $10 from $7.50 and keeps a Neutral rating on the shares. The firm notes the new team is off to a great start as the business continues to accelerate and impressively was led by Security upside within the existing installed base that caused higher leverage within the business. The pricing environment continues to remain favorable, Fastly is seeing customers look to consolidate more on them, and the cross-sell initiative around Security under the new CRO is going well. The Q4 setup looks very achievable and could result in another quarter of acceleration. Piper is encouraged by the execution, though it is looking into how durable growth is heading into next year given the market tailwinds in 2025.