By Christiana Sciaudone
Investing.com -- Fastly (NYSE:FSLY) shares are up almost 8% as Oppenheimer says the TikTok loss is no biggie.
The firm bumped the stock to outperform from perform and raised the price target to $125 from $108.
In August, Oppenheimer sidelined Fastly on tougher 2021 comps and the loss of TikTok as a customer, which has been priced in already, Seeking Alpha reported. But analyst Timothy Horan said he's incrementally more positive after channel checks for the fourth quarter, which suggest record traffic volumes, and the positive launch of compute@edge, which omits the need to use a server, according to StreetInsider.
Covid-19 lockdowns have provided a boost for the company, which should nonetheless continue once they are finished.
"An important part of our bull thesis is that FSLY should trade at par with Cloudflare (NYSE:NET), and for a moment this summer it traded at a premium, but recently FSLY has massively underperformed its peer group," Oppenheimer said.
Cloudflare is up about 40% since mid-October, when shares of Fastly dropped by 50% before recovering after the loss of TikTok. The stock is still down about 18% since then.
TikTok, which once was Fastly's largest customer, may be back with a new president in charge in the U.S. and Donald Trump off in Florida by the pool at Mar-a-Lago.