Are you interested in investing in the booming space industry? If so, then you’ll want to pay attention to Texas-based satellite manufacturer AST Spacemobile. This company is making waves in the market by building satellites to provide a space-based broadband network to unmodified smartphones.
According to UBS analyst Christopher Schoell, AST Spacemobile is a risky yet potentially lucrative investment opportunity. The stock has seen significant growth, with a 44% increase year-to-date and a staggering 284% jump over the past month. Schoell even increased his price target for the stock, implying a 50.8% potential upside from Friday’s closing price.
One of the key factors driving this growth is AST’s strategic partnerships with major players in the telecommunications industry. The recent partnership with Verizon, which includes a $100 million raise for AST, demonstrates the company’s ability to secure funding and expand its business model. Additionally, AST’s deal with AT&T to provide remote coverage across the United States further solidifies its position in the market.
Looking ahead, AST has several catalysts that could propel the stock even higher. The upcoming launch of its first five commercial satellites and the Federal Communications Commission’s “Supplemental Coverage from Space” order are expected to drive further growth. AST’s ability to collaborate with cellular network providers and its focus on linking unmodified devices using multiple spectrum bands sets it apart from other players in the industry.
While AST Spacemobile shows promise, it is important to be aware of the risks involved in investing in such a high-growth, competitive market. Potential uncertainties such as launch timing, regulatory issues, and competition could impact the company’s future performance. However, AST’s strong partnerships with industry giants like AT&T, Vodafone, Google, and Verizon provide credibility to its technology and financial stability.
As an investor, it is crucial to carefully evaluate the risks and rewards of investing in AST Spacemobile. With its innovative technology and strategic partnerships, AST has the potential to become a major player in the space-based broadband industry. Stay informed and stay ahead of the game by keeping an eye on AST Spacemobile and its exciting developments in the coming months.