SpaceMobile AST Ascents; Barclays sees a “very important market”

AST SpaceMobile The ASTS rose on Monday after a Barclays analyst launched coverage of the space-based broadband cellular network operator with an overweight rating and a price target of $ 29.

Shares of Midland, Texas, at last check, were 2.4% higher at $ 13.06.

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Analyst Mathieu Robilliard said in a research note that “AST SpaceMobile’s proposal is unique and the addressable market is very important: to extend mobile coverage everywhere via satellite”.

“This promises to respond to a growing political priority for governments: bridging the digital divide,” Robilliard said.

“The investment case carries high risk, but if the technology works as expected and management does, we see a compelling investment opportunity. “

The analyst said the AST SpaceMobile project is expanding mobile coverage through its satellite constellations when users are out of range of cell phone towers.

“The key to the project is the fact that there would be no need to modify the mobile handsets to connect to the satellites,” said Robilliard.

The stock had been a stock favorite even last month, with users on Reddit’s Wallstreetbets forum claiming the stocks “were going to the moon.”

Robilliard’s strategic investors will work with AST SpaceMobile to develop the project.

In addition, he said, AST has signed a business deal with Vodafone (VOD) – Get a report to provide the service and MoUs with a number of other telecommunications operators, such as AT&T (T) – Get a report, Telefonica (TEF) – Get a report and Millicom (TIGO) – Get a report.

“This and the experienced and motivated management team give confidence in this company despite the many uncertainties,” he said.

Sgoco (SGOC) – Get a report surged on Monday as investors continued to push even stocks higher, expecting the momentum as well as the potential for sales and earnings to raise the valuations of lesser-known and less proven companies.

Timothy Collins of Real Money said that memes stocks can be volatile, but that’s the reality of the stock market.

Last month, Deutsche Bank analyst Bryan Kraft launched the cover for AST SpaceMobile with a buy rating and a price target of $ 35.

If management executes the plan over the next five years, the intrinsic value of the business should ultimately be “significantly higher” than the target of $ 35, Kraft said.

He warned, however, that the stock could also end up worth zero if AST’s tech solution to allow satellites to communicate directly with smartphones does not perform or scale as expected.

AST SpaceMobile went public when AST & Science merged with New Providence Acquisition NPA, a specialist acquisition company.


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