AST SpaceMobile is a company that focuses on providing mobile connectivity services from space. ( ASTS 24.40% ) The stock price has been steadily increasing since the company shared its latest business update and second-quarter financial results last week. The upward trend started when the company confirmed that the launch plans for its most important satellite are progressing as scheduled.
On Friday, Scotiabank Andres Coello, an analyst from Scotiabank, increased the target price set by his company. A company specializing in communication services for space. AST shares increased significantly by 33% to reach $28 per share. Coello reiterated a buy recommendation despite the shares closing at $31 on Friday. Today, AST shares are up by 15.6% as of 12:55 p.m. ET.
Lottery for launching satellites
But Coello’s target price raised The recent surge in AST shares is not due to any other reason but the anticipation and enthusiasm among investors for the company’s imminent release of its initial commercial satellites. AST has further fueled this excitement with its actions. proposal for individual investors to possibly be present at the upcoming BlueBird launch of five satellites next month.
The company considers the launch to be a crucial milestone as they aim to place the five satellites into low-earth orbit in order to improve space-based cellular broadband connectivity.
Scott Wisniewski, president of AST SpaceMobile, expressed a desire to involve as many shareholders as possible in the upcoming launch who have supported the company throughout its journey.
AST has received financial support and business from various international communications companies. The Scotiabank analyst believes that a successful introduction could boost the number of subscribers using AST’s satellites. This may lead to a rise in average revenue per user (ARPU) and attract attention from additional mobile network providers.
The BlueBird satellites of AST have been transported to the launch site in Cape Canaveral, Florida. The launch is scheduled to commence on September 11. Share prices are rising as investors show interest in the company’s promising prospects. However, it is important to remain cautious as this surge in stock value may indicate that the market has already factored in the positive news of the upcoming launch.
