AST SpaceMobile, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Michael Funk from Bank of America Securities reiterated a Hold rating on the stock and has a $55.00 price target.
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Michael Funk has given his Hold rating due to a combination of factors surrounding AST SpaceMobile’s current operational and strategic developments. The company is facing delays in the launch of its Block 2 BlueBird satellites, which were initially expected to be launched earlier in the summer. This postponement could potentially lead to further delays in manufacturing and launching the entire satellite constellation, adding uncertainty to the company’s timeline for achieving its operational goals.
Additionally, while AST SpaceMobile is making strategic moves such as acquiring S-Band spectrum rights and securing long-term spectrum access through an agreement with Ligado, these transactions are still pending regulatory approvals and performance-based milestones. The financial implications of these deals, including a significant payment to Ligado, also add to the cautious outlook. Given these uncertainties and the early-stage nature of AST SpaceMobile’s business, Michael Funk maintains a Neutral rating with a price objective of $55, awaiting clearer progress in the company’s satellite operations and revenue generation before considering a more positive stance.
Funk covers the Technology sector, focusing on stocks such as AST SpaceMobile, NICE, and Guidewire. According to TipRanks, Funk has an average return of -8.2% and a 36.67% success rate on recommended stocks.