Investment Banks Back AST SpaceMobile Amid SpaceX Cellular Plans
Roth Capital and BNP Paribas issued optimistic outlooks for AST SpaceMobile after SpaceX announced plans to launch a national cellular service in the United States.
Investment banks Roth Capital and BNP Paribas have issued optimistic outlooks for AST SpaceMobile following an announcement by Space Exploration Technologies Corp. regarding plans to launch a national cellular service in the United States. Roth Capital maintained a $108 share price target for AST SpaceMobile, identifying the company as the preferred direct-to-device partner for T-Mobile, AT&T, and Verizon.
Analysts at BNP Paribas argued that SpaceX lacks the spectrum necessary to build a competitive fourth network and questioned its ability to manage capital requirements and retail distribution. They suggested SpaceX's plan to deploy terrestrial infrastructure on rooftops and towers might be a tactic to pressure wireless carriers into MVNO deals or to lower carrier valuations for future acquisitions. Roth Capital further noted that T-Mobile has already distanced itself from SpaceX, which may strengthen AST SpaceMobile's ties with Tier 1 operators.
AST SpaceMobile CEO Abel Avellan stated the company's network can provide peak data rates of nearly 200 Mbps. The company continues to expand its fleet, with BlueBirds 14, 15, and 16 satellites recently arriving at a warehouse in Cape Canaveral.
