Analyst Chris Schoell of UBS maintained a Hold rating on AST SpaceMobile, retaining the price target of $43.00.
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Chris Schoell has given his Hold rating due to a combination of factors influencing AST SpaceMobile’s current position and future prospects. The company is making strides towards commercialization, with plans to launch its first Block 2 satellite soon and a series of launches to follow, aiming to have 45-60 satellites in orbit. However, while these developments are promising, the company’s business model relies heavily on commercial agreements that are front-loaded with revenue commitments, which could pose risks if not managed effectively.
Additionally, AST SpaceMobile is expanding its manufacturing capacity and exploring opportunities with the U.S. government, which could enhance its revenue streams. Despite these positive steps, the competitive landscape, particularly with significant players like Echostar and SpaceX, presents challenges. The company’s funding situation appears stable for now, but future capital needs could impact its financial flexibility. These mixed factors contribute to the Hold rating, suggesting a cautious approach as the company navigates its growth trajectory.
Schoell covers the Communication Services sector, focusing on stocks such as Cogent Comms, Electronic Arts, and Take-Two. According to TipRanks, Schoell has an average return of 27.5% and a 66.67% success rate on recommended stocks.
In another report released on November 24, Scotiabank also upgraded the stock to a Hold with a $45.60 price target.