After AST SpaceMobile (ASTS) announced that Verizon (VZ) has joined AT&T (T) with a definitive agreement to use AST’s network for space-based cellular service, William Blair analyst Louis DiPalma called the competitive win over SpaceX’s Starlink “a significant positive” for AST relative to the scenario of Verizon defecting to Starlink. While noting that Starlink was likely aggressive in pursuing Verizon, which may have negatively impacted the terms negotiated, and acknowledging that it is still possible that AT&T and Verizon multisource their satellite partners, the firm argues that dual-sourcing would increase complexity. William Blair has a Market Perform rating on AST SpaceMobile shares, which are up $6.88, or 9%, to $81.63 in morning trading.
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