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Investing.com - Deutsche Bank lowered its price target on AST Spacemobile stock to $117 from $139 while maintaining a Buy rating on the shares.
The price target reduction follows Amazon’s announcement that it will acquire Globalstar as part of a plan to enter the direct-to-device market. AST Spacemobile (NASDAQ:ASTS) fell 10.5% following the news, with shares closing at $84.83 compared to the previous close of $98.97. An InvestingPro Tip notes the stock has taken a big hit over the last week, part of a broader pattern of volatility reflected in its high beta of 2.8. For deeper insights into ASTS’s valuation and 10+ additional ProTips, visit InvestingPro.
Deutsche Bank analyst Bryan Kraft said the market’s response to the announcement was directionally rational given the prospects of another well-capitalized competitor entering the direct-to-device space.
The firm’s price target change is driven by the assumption that pricing will be 15% lower than in its previous model due to increased competition in the market.
Deutsche Bank continues to recommend the stock despite the lowered price target and competitive concerns.
In other recent news, AST SpaceMobile reported its fourth-quarter 2025 earnings, surpassing revenue expectations by 30%, although EBITDA fell short by 9%. The company has also issued revenue guidance for 2026, projecting between $150 million to $200 million, primarily due to gateway deliveries and government milestones. Barclays raised its price target for AST SpaceMobile to $65, up from $60, while maintaining an Underweight rating, following the successful launch of its sixth BlueBird satellite in December 2025. Additionally, a visit from a Meta executive, Vinod Samarawickrama, highlighted AST SpaceMobile’s unique approach to satellite connectivity and its plan to deploy 45 to 60 large satellites by 2026. The space sector saw a boost as NASA launched its first crewed lunar mission in half a century, contributing to a 9% rise in AST SpaceMobile shares. Furthermore, the anticipation of SpaceX’s accelerated initial public offering has positively impacted U.S. space stocks, including AST SpaceMobile. These developments reflect significant activity and interest in the space industry.
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