Oppenheimer's analyst, Timothy Horan, has started monitoring AST SpaceMobile (ASTS, Financial), assigning it a Perform rating without setting a price target. The company is focused on deploying mobile cell-sites in low Earth orbit, aiming to provide comprehensive 5G mobile services in rural regions. However, AST SpaceMobile remains in a venture phase, primarily pre-revenue, which makes it a significantly high-risk investment.
The firm expresses concerns over several uncertainties, including spectrum access and management, the business model, the competitive landscape, and its relationships with suppliers. These factors contribute to the overall risk surrounding the investment in ASTS, according to the analyst's note.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for AST SpaceMobile Inc (ASTS, Financial) is $42.27 with a high estimate of $64.00 and a low estimate of $30.00. The average target implies an upside of 60.00% from the current price of $26.42. More detailed estimate data can be found on the AST SpaceMobile Inc (ASTS) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, AST SpaceMobile Inc's (ASTS, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for AST SpaceMobile Inc (ASTS, Financial) in one year is $0.66, suggesting a downside of 97.5% from the current price of $26.42. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the AST SpaceMobile Inc (ASTS) Summary page.
ASTS Key Business Developments
Release Date: March 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- AST SpaceMobile Inc (ASTS, Financial) has secured agreements with approximately 50 mobile network operators globally, covering nearly 3 billion subscribers.
- The company has successfully launched and operationalized five Block 1 Bluebird satellites, demonstrating full broadband capabilities.
- AST SpaceMobile Inc (ASTS) has strengthened its financial position with a $460 million convertible senior notes offering, resulting in nearly $1 billion in cash.
- The company has signed a $43 million contract with the US Space Development Agency, highlighting its dual-use technology capabilities.
- AST SpaceMobile Inc (ASTS) has expanded its manufacturing footprint, with facilities in Texas, Spain, and Florida, to support increased satellite production.
Negative Points
- The company faces risks and uncertainties related to regulatory approvals, particularly from the FCC, for full commercial operations.
- AST SpaceMobile Inc (ASTS) is still in the process of scaling its satellite production, with a target of six satellites per month by the second half of 2025.
- The company has significant capital expenditure requirements, with expected CapEx in the range of $150 to $175 million in the first quarter of 2025.
- There is a dependency on successful integration and cooperation with mobile network operators to achieve commercial service rollout.
- AST SpaceMobile Inc (ASTS) is pursuing additional funding sources, including quasi-governmental funding, which may impact its financial strategy and liquidity.
