AST SpaceMobile price target lowered to $117 from $139 at Deutsche Bank

Deutsche Bank lowered the firm’s price target on AST SpaceMobile (ASTS) to $117 from $139 and keeps a Buy rating on the shares. Amazon’s (AMZN) acquisition of Globalstar (GSAT) warrants revisiting the AST investment thesis, the analyst tells investors in a research note. The firm believes the market’s response to the news was “directionally rational,” with AST trading down 10%, due to the prospects of “another well-capitalized competitor” attempting to enter the direct-to-device space. The cut price target reflects Deutsche’s assumption that AST’s pricing will now be 15% lower than in its previous model due to more competition. However, it believes direct-to-device is a “very large market with room for multiple competitors to succeed.”

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