UBS analyst Chris Schoell has maintained their neutral stance on ASTS stock, giving a Hold rating yesterday.
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Chris Schoell has given his Hold rating due to a combination of factors impacting AST SpaceMobile’s current and future performance. The company’s recent financial results were mixed, with third-quarter revenues falling short of expectations while cash expenses exceeded prior guidance. Despite these challenges, the company has secured over $1 billion in contractual revenue commitments from commercial operators, including a significant agreement with stc group/Saudi Telecom.
Additionally, AST SpaceMobile has outlined ambitious launch and manufacturing plans, aiming to have 45-60 satellites in orbit by the end of 2026, although initial delays have been noted. The company has also secured funding for over 100 satellites, which is crucial for achieving continuous coverage in targeted markets. Furthermore, there is potential for additional government funding, which could support future growth. However, given these mixed signals and the need for execution on its strategic plans, a Hold rating seems appropriate at this time.
In another report released yesterday, Bank of America Securities also reiterated a Hold rating on the stock with a $85.00 price target.
Based on the recent corporate insider activity of 42 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ASTS in relation to earlier this year.