AST SpaceMobile downgraded to Underperform from Sector Perform at Scotiabank

Scotiabank downgraded AST SpaceMobile (ASTS) to Underperform from Sector Perform with a $45.60 price target AST SpaceMobile’s share price has “once again overshoot to what we see as irrational levels,” says the analyst, whose middle-ground scenario points to a valuation range between $45 and $55 per share. While the company’s technology is “impressive,” the firm says it “cannot remember a single time when the company got timing right.” Evidence of slow user adoption in the U.S. and Japan, modest ARPUs and high capex means investors may have to wait until 2028 or 2029 for tangible cash flow generation, the analyst added.

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