Shares of AST SpaceMobile Inc. (NASDAQ:ASTS) are trading flat Friday morning as investors digest an analyst downgrade from B.Riley, which balanced recent hardware launch progress against emerging competitive threats and pricing uncertainties.
Here’s what investors need to know.
- AST SpaceMobile stock is showing downward bias. Where are ASTS shares going?
B.Riley Downgrade and Target Price Revision
On Friday, B.Riley downgraded AST SpaceMobile to Neutral from Buy and lowered its price target to $65 from $85. While acknowledging that the company remains a leader in enabling direct-to-device cellular broadband for unmodified smartphones, the brokerage noted that the stock’s risk-reward profile has rebalanced.
The firm highlighted key operational headwinds including delayed launches, rising constellation deployment costs, and intensifying competition from rival space-based networks, such as Viasat and Space42’s Equatys joint venture.
Operational Milestones and Commercial Visibility
The downgrade comes despite notable operational milestones for the company’s satellite constellation buildout. AST SpaceMobile recently confirmed the full orbital deployment of its BlueBird 11 satellite and successfully shipped BlueBirds 14, 15, and 16 from its Midland, Texas manufacturing facility to Cape Canaveral, Florida for upcoming launch.
“We continue to believe ASTS is among the leaders in the race to enable true broadband connectivity to unmodified phones. However, with MNO subscriber uptake and service plan pricing data still to come, we believe shares fairly reflect what we know today,” said Mike Crawford, analyst at B.Riley.
ASTS Stock Pauses Friday Morning
ASTS Price Action: AST SpaceMobile shares were up 0.42% at $57.28 during premarket trading on Friday, according to Benzinga Pro data.
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