William Blair analyst Louie DiPalma has maintained their neutral stance on ASTS stock, giving a Hold rating on September 25.
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Louie DiPalma has given his Hold rating due to a combination of factors surrounding AST SpaceMobile’s current operational progress and market position. The recent announcement about the upcoming launches of the BlueBird 6 and 7 satellites indicates positive momentum in AST’s satellite deployment plans, which is crucial for achieving continuous broadband coverage by 2026. However, despite this progress, there are concerns about potential delays in satellite launches, which could impact the company’s ability to meet its ambitious deployment schedule.
Additionally, while there is potential demand for satellite-based cellular services, as evidenced by T-Mobile’s promotion of its T-Satellite services, the competitive landscape poses challenges. SpaceX’s acquisition of spectrum could influence AST’s partnerships with major carriers like AT&T and Verizon, potentially strengthening these alliances but also introducing uncertainties. Given these mixed factors, DiPalma’s Hold rating reflects a cautious stance, acknowledging both the opportunities and risks facing AST SpaceMobile.
In another report released on September 25, Scotiabank also maintained a Hold rating on the stock with a $42.90 price target.
Based on the recent corporate insider activity of 45 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.