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Investing.com - Clear Street initiated coverage on AST Spacemobile (NASDAQ:ASTS) with a Buy rating and a $59.00 price target on Thursday. The stock, which has surged over 100% year-to-date, currently trades near $42.50, with analyst targets ranging from $30 to $64.
The research firm sees AST Spacemobile as a long-term mobile growth opportunity targeting approximately 5.6 billion global mobile users with patented satellite technology that eliminates the need for specialized ground equipment. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 10.62, though it currently trades above its Fair Value.
Clear Street projects reliable commercial service from AST Spacemobile by 2027, followed by what it expects to be a breakout year in 2028 with projected revenues of $2.3 billion and adjusted EBITDA of $1.3 billion.
The firm highlighted key collaborations supporting AST Spacemobile’s growth potential, including partnerships with Verizon (NYSE:VZ), AT&T, Vodafone (NASDAQ:VOD), and Rakuten.
The $59 price target represents approximately 19 times Clear Street’s 2028 EBITDA estimate, which translates to 11 times projected revenue, and is supported by the firm’s ten-year discounted cash flow analysis.
In other recent news, AST SpaceMobile has secured a $100 million equipment financing facility led by Trinity Capital Inc (NASDAQ:TRIN). This non-dilutive financing aims to support the company’s manufacturing and network deployment goals for the coming years. The facility provides long-term liquidity through 2031, with $25 million already drawn at closing against previously purchased equipment. Additionally, AST SpaceMobile announced plans to repurchase $225 million of its convertible notes due 2032, a move that will eliminate approximately $63.8 million in remaining interest payments. This repurchase will be funded by issuing 9.45 million shares of Class A common stock to participating note holders. Following this, $235 million of the 2032 convertible notes will remain outstanding. BofA Securities recently initiated coverage of AST SpaceMobile with a Neutral rating, citing the company’s early-stage, high projected growth. The firm has set a price target of $55 based on discounted cash flow analysis.
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