UBS lifts AST Spacemobile stock target to $38, maintains Buy rating

On Wednesday, UBS analyst Chris Schoell increased the price target for AST Spacemobile (NASDAQ:ASTS) shares to $38.00, up from the previous $31.00, while reiterating a Buy rating on the stock. The stock, currently trading at $32.64, has shown remarkable momentum with an 850% return over the past year. According to InvestingPro data, analyst targets range from $15 to $64, reflecting the stock’s high-risk, high-reward profile. Schoell’s optimism is bolstered by the company’s recent progress, including successful satellite tests, new carrier agreements, scaling production, and funding advancements.

AST Spacemobile has expanded its agreements to approximately 50 carriers, which now cover nearly 3 billion subscribers, an increase from the 45+ carriers and over 2.8 billion subscribers reported earlier. This expansion does not account for the additional 500 million-plus subscribers that could be reached through the recently established joint venture with Vodafone (NASDAQ:VOD) in Europe. While the company maintains a strong financial position with a current ratio of 7.9 and more cash than debt, InvestingPro analysis reveals 12 additional key insights about the company’s financial health and growth prospects.

The company has also secured launch capacity for 60 satellites, compared to 45 previously planned for the years 2025 and 2026. Management has indicated that the first Block 2 satellite is set to be shipped by the end of April. Furthermore, AST Spacemobile is expected to produce six satellites per month in the second half of 2025, surpassing initial expectations.

UBS anticipates that AST Spacemobile will achieve continuous coverage in its target areas by 2026, which is projected to significantly boost the company’s revenue. Schoell’s revised estimates now forecast approximately $465 million in revenue and $173 million in EBITDA for 2026, with expectations of growth to $2.0 billion in revenue and $1.4 billion in EBITDA by 2028. These figures have been adjusted upward from the previous estimates of $1.8 billion in revenue and $1.3 billion in EBITDA.

The analyst’s statement emphasized the high-risk, high-reward nature of investing in AST Spacemobile, but the recent developments have increased confidence in the scalability and execution of the company’s plans. With a market capitalization of $10.32 billion and strong momentum indicators, the stock has garnered significant investor attention. As a result, the revised price target reflects a more bullish outlook for the stock’s future performance. For deeper insights into ASTS’s valuation and growth potential, access the comprehensive Pro Research Report available exclusively on InvestingPro.

In other recent news, AST SpaceMobile reported its fourth-quarter 2024 financial results, surpassing analysts’ expectations with a narrower-than-anticipated loss. The company’s earnings per share (EPS) came in at -$0.18, beating the forecast of -$0.21, while revenue reached $4.42 million, exceeding the anticipated $3.22 million. These positive earnings results have marked a significant turnaround for AST SpaceMobile, reflecting strong investor confidence in its financial health and strategic direction. The company is advancing its satellite technology and plans to increase satellite production to six per month by the second half of 2025. Additionally, AST SpaceMobile has secured launch capacity for 60 satellites between 2025 and 2026. In terms of analyst activity, no specific upgrades or downgrades were mentioned, but the company’s strategic moves have been noted by firms such as B. Riley Securities. These recent developments indicate AST SpaceMobile’s robust performance and strategic planning as it aims for further growth in the telecommunications sector.

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