Scotiabank downgrades AST SpaceMobile on valuation after rally

Scotiabank downgraded AST SpaceMobile (ASTS) to Sector Perform from Outperform with an unchanged price target of $45.40. The firm cites valuation for the downgrade with the shares above the price target following the “impressive rally.” While Scotiabank “couldn’t be more optimistic on prospects for such a valuable and disruptive technology,” it does not new reasons to push its target higher. The launch of the FM1 from India and the subsequent launching campaign will test AST’s ability to orbit dozens of satellites, the analyst tells investors in a research note. In addition, the company’s competitive race against Starlink and Globalstar (GSAT) “could heat up,” contends the firm.