William Blair analyst Louie DiPalma has maintained their neutral stance on ASTS stock, giving a Hold rating today.
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Louie DiPalma has given his Hold rating due to a combination of factors surrounding AST SpaceMobile’s recent developments and market positioning. The recent agreement with Verizon, alongside AT&T, to utilize ASTS’s network for space-based cellular service is a positive step, yet it comes with certain challenges. The collaboration with these major telecom companies is a competitive advantage over SpaceX’s Starlink, which was also vying for Verizon’s partnership. However, the lack of exclusivity in these agreements suggests that AT&T and Verizon might still consider other satellite partners, which introduces uncertainty.
Additionally, while the Verizon deal is a significant win, the terms may have been affected by Starlink’s aggressive pursuit, potentially impacting ASTS’s negotiating power. The anticipated service launch in 2026, which might occur before the necessary satellite threshold is reached, adds another layer of risk. Investors are also looking for alternatives to SpaceX, which is valued significantly higher, but AST SpaceMobile’s current valuation and market risks suggest a cautious approach, justifying the Hold rating.
In another report released today, Bank of America Securities also reiterated a Hold rating on the stock with a $80.00 price target.