AST SpaceMobile Shares Rebound Slightly After Downgrade and Spectrum Bid
Shares of AST SpaceMobile, Inc. (ASTS) fell 8.54% to $47.06 on Tuesday before rising 0.5% in overnight trading. The drop followed a rating downgrade from Piper Sandler, which lowered its recommendation to Neutral from Overweight and cut its price target from $98 to $54. The firm cited reduced confidence in the company's satellite launch timeline for 2026 and 2027, as well as competitive risks from SpaceX. Conversely, Clear Street reiterated its Buy rating and $115 price target, stating that AST SpaceMobile remains roughly six months ahead of SpaceX.
In regulatory developments, AST SpaceMobile urged the Federal Communications Commission to back secondary satellite-to-phone spectrum allocations in two wireless communications service bands. The proposed framework would allow satellite links to connect directly to unmodified mobile phones without needing specialized hardware. Meanwhile, an executive from partner Vodafone Group questioned whether SpaceX could replicate its American wireless approach in European markets due to differences in regulation, spectrum, and pricing.
Investors will monitor regulatory updates and upcoming satellite deployments. While AST SpaceMobile currently depends on SpaceX's Falcon 9 rockets for launches, alternate launch options such as Blue Origin's New Glenn rocket could potentially ease capacity constraints in the future.
Key points
- AST SpaceMobile shares fell 8.54% to $47.06 on Tuesday before rebounding 0.5% overnight.
- Piper Sandler downgraded ASTS to Neutral with a $54 target, while Clear Street kept a $115 target.
- The company urged the FCC to support new direct-to-cell satellite spectrum allocations.
- A Vodafone executive questioned SpaceX's ability to replicate its U.S. mobile strategy in Europe.
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Why did AST SpaceMobile stock decline on Tuesday?
AST SpaceMobile stock fell 8.54% after Piper Sandler downgraded the shares to Neutral and cut its target to $54, citing satellite launch schedule concerns and potential competition from SpaceX.
What spectrum changes is AST SpaceMobile requesting from the FCC?
AST SpaceMobile asked the FCC to support satellite-to-phone spectrum allocations in two wireless bands to allow standard smartphones to connect directly to satellites without extra hardware.
What are analysts saying about AST SpaceMobile's price target?
Piper Sandler lowered its price target for AST SpaceMobile to $54, implying roughly 15% upside, whereas Clear Street maintained a Buy rating with a $115 target, implying about 145% upside.