AST SpaceMobile Inc. (NASDAQ:ASTS) shares are climbing Monday after Deutsche Bank lifted its rating on the stock and maintained its price target. Here’s what you should know.
- AST SpaceMobile stock is charging ahead with explosive momentum. Why is ASTS stock up today?
AST SpaceMobile Rises After Deutsche Bank Upgrades Stock to Buy
Deutsche Bank analyst Bryan Kraft moved AST SpaceMobile up to Buy from Hold and left the $93 price target unchanged. The stock has dropped roughly 65% since its all-time high in May.
Kraft had cut the rating in May, after the New Glenn launchpad explosion forced a significant delay in AST SpaceMobile’s launch plans and valuation worries added to the pressure. Kraft now sees a good moment to turn more positive. Shares have weakened, several catalysts and positive developments have gone unnoticed and spectrum value now covers all but $10 per share of the company’s enterprise value (EV).
Deutsche Bank Calls Friday’s 10% Drop Misguided
AST SpaceMobile slid 10% Friday after Space Exploration Technologies Corp. (NASDAQ:SPCX) said on Oct. 8 that it would buy 14 MHz of 800 MHz spectrum from Grain Management. Kraft thinks investors overreacted. That spectrum does not turn SpaceX into a stronger mobile network operator (MNO) partner for direct-to-device (D2D) service, Kraft said.
AST SpaceMobile is not chasing direct-to-consumer customers, and SpaceX plans to use the 800 MHz band mainly for that purpose.
Deutsche Bank Sees T-Mobile Switching From Starlink to AST SpaceMobile
Kraft sees a growing chance that T-Mobile US Inc. (NASDAQ:TMUS) will swap Starlink for AST SpaceMobile as its D2D partner through the joint venture. The shift lines up roughly with the Oct. 1 news that AT&T, Verizon and T-Mobile signed a final agreement to create a D2D joint venture. T-Mobile also seems to have scrubbed many, though not all, mentions of Starlink from its website.
SpaceX’s push into mobile keeps irritating the Big 3 carriers and eroding their market values, Kraft said, which nudges them closer to AST SpaceMobile. The 14 MHz purchase was the newest jab.
ASTS Shares Are Jumping
ASTS Price Action: AST SpaceMobile shares were up 5.42% at $53.73 at the time of publication on Monday, according to Benzinga Pro.
Image: PJ McDonnell/Shutterstock
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