Fastly price target lowered to $9 from $10 at Piper Sandler

Piper Sandler analyst James Fish lowered the firm’s price target on Fastly (FSLY) to $9 from $10 and keeps a Neutral rating on the shares. The firm notes Fastly reported an overall mixed quarter. Positively, Fastly reported a 2% beat driven by CDN upside and Security re-acceleration, 2025 sales guide came in above Street, Fastly is seeing early Edgio benefits, the CDN landscape is improving, and guide prudently excludes U.S. TikTok after March 1. However, management is ramping S&M spending and international network capacity, which results in lower margins in 2025 and another cash-burn year, and the firm remains concerned with customer concentration.