William Blair analyst Louie DiPalma has maintained their neutral stance on ASTS stock, giving a Hold rating today.
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Louie DiPalma has given his Hold rating due to a combination of factors surrounding AST SpaceMobile’s current financial and operational status. The company has secured over $1 billion in contracted revenue commitments from major partners like AT&T, Verizon, and Saudi Telecom, which is a positive indicator of future revenue streams. However, despite these agreements, the company is still in the early stages of its satellite deployment, with significant milestones yet to be achieved, such as the launch of its first 100 satellites and achieving a manufacturing cadence of six satellites per month by the end of 2025.
Additionally, AST SpaceMobile’s recent financial performance showed a slight revenue beat, with $14.7 million compared to the estimated $14.1 million, driven by government contracts and equipment deliveries. While management remains optimistic about future revenue growth, projecting $50 million to $75 million in the second half of fiscal 2025, the company’s ambitious goals and the need for substantial capital investment present risks. These factors contribute to the Hold rating as investors may want to wait for more concrete progress in satellite launches and revenue realization before taking a more bullish stance.
In another report released today, UBS also maintained a Hold rating on the stock with a $43.00 price target.
Based on the recent corporate insider activity of 42 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ASTS in relation to earlier this year.