Fastly stock price target raised to $7 at Piper Sandler

Published 08/05/2025, 13:16
Fastly stock price target raised to $7 at Piper Sandler

On Thursday, Piper Sandler showed a positive outlook on Fastly Inc . (NYSE:FSLY) by raising the price target from $6.00 to $7.00, while keeping a Neutral rating on the company’s shares. According to InvestingPro data, the stock has shown strong momentum with a notable return over the last month, despite falling significantly over the previous three months. The firm’s analysts highlighted Fastly’s recent financial performance as a key factor for the adjustment. They noted that Fastly had its largest beat in over two years, attributing the success in part to the migration of Edgio’s installed base and improved pricing dynamics due to reduced competition. The company’s financial metrics support this positive momentum, with revenue growing at 7.45% and maintaining a healthy current ratio of 4.21, though InvestingPro analysis indicates the company is not yet profitable over the last twelve months.

The management’s efforts to revamp Fastly’s go-to-market strategy were also acknowledged, with changes such as increased minimum commitments and packaging adjustments that have enhanced visibility and leverage. Piper Sandler’s analysts believe that these initiatives are instrumental in restoring the company’s credibility and could position Fastly to return to mid-teens growth rates. With a market capitalization of $872 million, Fastly shows potential for growth, and detailed analysis available in the InvestingPro Research Report provides comprehensive insights into the company’s growth trajectory.

The analysts further mentioned that Fastly’s FY25 guidance appears conservative, particularly given the improved visibility and in-period Net Revenue Retention (NRR) rates. They also pointed out that Fastly seems to be insulated from current macroeconomic concerns, with the exception of its exposure to TikTok.

The report concluded by reiterating the Neutral rating, despite the increase in the price target to $7.00. This adjustment reflects a cautious optimism about Fastly’s path to stability and potential for continued growth.

In other recent news, Fastly Inc. reported impressive first-quarter 2025 financial results, with revenue reaching $144.5 million, surpassing analysts’ forecasts of $136 million to $140 million. The company’s earnings per share (EPS) also exceeded expectations, coming in at -$0.05 compared to the predicted -$0.06. Fastly raised its revenue guidance for 2025 to a range of $585 million to $595 million, indicating a 9% growth. The company experienced an 8% year-over-year revenue increase, driven by enhanced security and AI offerings, as well as a 64% growth in its compute and observability segment. Fastly’s strategic focus on expanding its customer base led to the acquisition of 19 new enterprise customers. William Blair maintained a Market Perform rating for Fastly, noting the company’s strong quarterly performance and increased 2025 guidance. Fastly’s CEO, Todd Nightingale, expressed optimism about market share gains and highlighted the company’s progress in product development and customer acquisition. The firm is also working to mitigate potential tariff impacts by purchasing server equipment in advance for U.S. market expansion.

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