Key Stats for AST SpaceMobile Stock
- Price change for AST SpaceMobile stock in last 6 months: -48%
- $ASTS Stock Price as of Oct. 12: $51
- 52-Week High: $134
- $ASTS Stock Price Target: $78
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>
What Happened?
Deutsche Bank upgraded AST SpaceMobile (ASTS) from Hold to Buy on Monday. It kept its $93 price target, which is about 82% above Friday’s close of $50.97.
Analyst Bryan Kraft says AST SpaceMobile stock is down about 65% from its May high when Deutsche Bank had downgraded the stock.
The New Glenn launchpad explosion had delayed AST’s launch plans, and valuation was a concern. Kraft now thinks the pullback makes this a good time to get more positive.
His main argument is about spectrum, and Deutsche Bank estimates spectrum accounts for all but $10 per share of AST’s enterprise value.
In simple terms, the market is valuing AST like a spectrum owner. It is giving almost no credit to the satellite business itself.
Kraft also sees a catalyst that many investors have missed. On Oct. 1, AT&T, Verizon and T-Mobile agreed to form a direct-to-device joint venture.
Around the same time, T-Mobile appears to have removed many references to Starlink from its website.
Kraft thinks T-Mobile is increasingly likely to switch from Starlink to AST.
See analysts’ growth forecasts and price targets for AST SpaceMobile stock (It’s free) >>>
What the Market Is Telling Us About AST SpaceMobile Stock
AST fell about 10% on Friday. AT&T, Verizon and T-Mobile dropped 10% to 13%. SpaceX’s plan to buy 14 MHz of 800 MHz spectrum from Grain Management triggered the move.
Kraft called the move “misguided.” He argued that spectrum doesn’t make SpaceX a stronger partner for carriers.
AST also isn’t targeting direct-to-consumer customers, where SpaceX will mostly use the spectrum.
Deutsche Bank even argues the news helps AST.
The more SpaceX pushes into mobile, the more the big carriers may want a partner like AST.
Estimate a company’s fair value instantly (Free with TIKR) >>>
So what is AST SpaceMobile stock actually worth?
TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR’s valuation model and see what ASTS stock could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It’s free to use.
Value AST SpaceMobile for free→
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
