Scotiabank maintains outperform rating for AST Spacemobile stock

Published 04/06/2025, 14:22
Scotiabank maintains outperform rating for AST Spacemobile stock

On Wednesday, Scotiabank (TSX:BNS) analysts reiterated their Sector Outperform rating and a $45.40 price target for AST Spacemobile stock (NASDAQ:ASTS), which currently trades at $25.18 with a market capitalization of $8.26 billion. According to InvestingPro data, the stock has shown significant volatility with a beta of 2.01, reflecting its dynamic growth profile. The analysts expressed a positive outlook following recent developments involving the company and Blue Origin, a rocket company founded by Jeff Bezos.

AST Spacemobile shares rose after Adriana Cisneros, a board member of ASTS and its first institutional investor, shared a photo on Instagram. The image featured herself, ASTS CEO Abel Avellan, and Jeff Bezos, suggesting significant developments at AST & Science and Blue Origin. The meeting’s location was not disclosed, but it follows a recent visit by Blue Origin management to ASTS’s headquarters in Texas.

In November 2024, AST Spacemobile announced a partnership with Blue Origin for launching up to 45 BB2 satellites, with options for an additional 15. Blue Origin’s New Glenn rocket is expected to launch up to eight satellites at a time, positioning ASTS as a key customer for Blue Origin. Analysts suggest this collaboration might extend beyond launches, potentially involving Amazon (NASDAQ:AMZN)’s Project Kuiper.

Project Kuiper, Amazon’s initiative to provide fixed broadband services, could benefit from a partnership with AST Spacemobile. The analysts noted that ASTS’s specialized RF technology, protected by numerous patents, presents a significant barrier to entry for competitors, including Kuiper. AST Spacemobile’s projected revenue is estimated to reach $30 billion by 2033, surpassing Kuiper’s projected $25 billion.

The analysts highlighted the potential for further collaboration between AST Spacemobile and Amazon, possibly involving commercial or equity agreements. Such partnerships could address the global satellite fixed-wireless opportunity, leveraging ASTS’s strong market position and high EBITDA margins.

In other recent news, AST SpaceMobile has reported its Q1 2025 earnings, revealing a mixed financial performance. The company posted an earnings per share (EPS) of -$0.20, surpassing the forecasted -$0.26, although its revenue fell short at $7.18 million compared to the expected $10.94 million. Additionally, AST SpaceMobile ended the quarter with $874.5 million in cash, a significant increase from the previous quarter’s $567.5 million. Analysts at Cantor Fitzgerald maintained an Overweight rating on AST SpaceMobile, with a price target of $30.00, citing the company’s updates on satellite deployments and new bookings in the Defense and gateway equipment sectors.

AST SpaceMobile has also announced its full-year revenue guidance and plans to launch a commercial service in early 2026, which could drive future revenue growth. The company anticipates deploying over 60 satellites during 2025 and 2026, with five scheduled launches over the next six to nine months. Despite the increased costs associated with satellite materials and launch deployments, Cantor Fitzgerald views AST SpaceMobile as well-positioned in the satellite communication market. The firm highlights the company’s strategic plans to secure more commercial agreements and government awards as positive catalysts on the horizon.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.