An analyst’s substantial price target hike significantly propelled AST SpaceMobile’s stock upwards on the penultimate trading day of the week. Investors enthusiastically backed the company, which is ambitiously working to create a space-based broadband cellular network, resulting in a nearly 5% surge in its stock price. In contrast, the S&P 500 remained flat throughout the session.
The analyst behind this optimistic projection is B. Riley’s Mike Crawford. Prior to the market’s opening on Thursday, Crawford elevated his price target for AST to $36 per share, up from his earlier target of $26, while maintaining his buy recommendation for the stock.
Crawford contends that AST remains on course to initiate commercial operations and anticipates the company will conclude the third quarter with close to $400 million in cash reserves. Additionally, it is expected to have access to $145 million through the conversion of stock warrants.
Though AST is currently in the pre-commercial phase, Crawford is confident that funding will not pose significant challenges. He noted that the highly specialized telecom company possesses various potential sources of capital, including pre-payment options from both government and private-sector clients.
Considering these favorable elements underpinning AST’s business, the analyst raised his projections for the company’s full-year 2025 revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA). These upward revisions prompted the price target increase.
Despite these positives, AST remains a speculative investment in the telecommunications sector. As expected for a company planning to deploy numerous mobile telephony satellites, AST has faced challenges. It has postponed the launch of its initial five-satellite network multiple times. While there is substantial promise in its business model, there is no certainty that clients will flock to subscribe to its services.
