Fastly price target raised to $10 from $8 at Piper Sandler

Piper Sandler raised the firm’s price target on Fastly (FSLY) to $10 from $8 and keeps a Neutral rating on the shares. The firm notes Fastly announced a new convert issuance and retirement of a large amount of the 2026 note. The 7.75% interest-rate is higher than Piper had previously been modeling, will likely carry some “sticker-shock” given other SMID-cap refinancings, and negatively impacts EPS, but it resolves near-term solvency concerns and delivers on CEO Nightingale’s early promise.