Analysts at Deutsche Bank have re-examined prospects for would-be global telco ‘space tower’ business AST SpaceMobile (AST) as being worth $53 (€50.51) per share. They recommend clients ‘BUY’ AST.
“We currently expect AST will begin broad commercial service in northern Latitudes during 2026. We expect that by 2030, AST will generate nearly $3 billion from Northern Hemisphere markets, and about $1.5 billion from Equatorial markets.”
The key catalyst to this upgrade is last week’s contract between AST and Vodafone and in particular Vodafone’s footprint in Europe, Africa, India and the Middle East. “[This] represents a large addressable market that will be pivotal for AST in achieving its global ambitions,” said the bank’s report.
The 10-year agreement with Vodafone builds on the long-standing commercial relationship between the pair. Vodafone was an early investor in AST, for example.
The bank says it believes the agreement with Vodafone and its 50/50 revenue share will be echoed by other telcos.
“AST is making progress on the government and defense market, which we think can contribute to the TV earlier than its consumer-facing SpaceMobile service. During the quarter, AST announced it had been awarded multiple U.S. government contracts, including its selection as a prime contractor by the U.S. Space Development Agency to compete for ‘upcoming prototype demonstration projects’. We are forecasting $50 million in government contract revenue next year, which would help offset some of AST’s ongoing expenses before full commercial service begins – which we expect in 2026,” added Deutsche Bank.