A significant price target increase from an analyst helped send AST SpaceMobile (NASDAQ: ASTS) well higher on the second-to-last trading day of the week. Bulls piled into the company, a unique operator that aims to establish a broadband cellular network in space, boosting its stock price by nearly 5% on the day. By contrast, the S&P 500 index only traded flat across the session.
A significant price target increase from a pundit
The person responsible for that analysis was B. Riley prognosticator Mike Crawford. Before market open on Thursday, Crawford raised his AST price target to $36 per share from his previous $26. He maintained his buy recommendation on the shares too.
The analyst believes AST is still well on track to commence commercial operations, and it's set to exit the third quarter with almost $400 million in cash. It also will have at its disposal $145 million deriving from the conversion of stock warrants.
Although AST remains in a pre-commercial stage just now, Crawford feels that financing won't be much of a problem, if at all. He wrote that the ultra-specialized telecom company has numerous potential other sources of capital. These include pre-payment options for both government and private-sector clients.
With these positive factors supporting AST's business, the pundit increased his estimates for full-year 2025 revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA). Those boosts, in turn, inspired the price target increase.
Still a very speculative telecom play
As might be expected of a company aiming to put a bunch of mobile telephony satellites in space, AST has had its struggles. Several times, it has delayed the launch of the first five satellites that will form its network, and while there's notable potential in its business, there's no guarantee packs of clients will eagerly sign up for the company's services.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
