AST SpaceMobile (AST) is expected to launch the first of its giant ‘second generation’ BlueBird satellites in July, and eventually will have around 250 satellites in orbit and will provide global direct-to-cellular and other broadband services. Bankers are getting increasingly enthusiastic about the company.
Deutsche Bank, for example, in one of its ‘Stocks in Focus’ notes to clients, has given a price target of $64 for AST and more than doubling its current price of $26, reflecting a 59.4 percent discount to the price target and the bank says it has updated its financial model for AST. “Manufacturing and launch plans are on track and have crystallized further,” said the bank.
The report added that AST is on track to launch 20 satellites this year and 40 next year.
Deutsche Bank is helped with its judgement by the response from tests of AST technology in Japan by Rakuten. AST has contracted capacity for the next 5 launches, and is working toward potentially significant non-dilutive funding options, says the bank.
Other bank reports have a similar enthusiasm, if not always quite such high estimates. Barclays has reiterated its ‘Overweight’ advice to clients, and with a $37 price target.
ScotiaBank, another enthusiastic forecaster, on May 13th, reiterated its previous forecasts although a slight reduction in its price target from $47.90 to $45.40.
Advanced Television