Bank reduces AST SpaceMobile’s share target price
January 27, 2025

Investment bank ScotiaBank, a recent fan of satellite-to-cellular operator, has lowered its price target for AST SpaceMobile from its previous $44.70 to $40.20.
The bank maintains its ‘Sector Outperform’ advice to clients for the stock. ScotiaBank’s price expectation is in the mid-range of the $15 to $53 currently suggested by other investment banks and analysts. AST was trading at $19.80 on January 24th.
AST SpaceMobile has announced a significant $1.01 billion of fresh financing this year, including $550 million for the acquisition of 40MHz of L-band spectrum from Ligado and up to $460 million through senior convertible notes with a favourable interest rate of 4.25 per cent announced last week. The net proceeds of that $460 million will be about $387 million and will be used for working capital and general corporate purposes.
According to Investing.com, Scotiabank’s report highlighted the current complexities faced by AST SpaceMobile, such as the need to incorporate the impact of higher interest payments. The lack of full clarity on how the company’s substantial cash position will influence their rollout schedule presents a challenge. For instance, there’s uncertainty about the potential acceleration of their buildout.”
However, ScotiaBank stressed that it remains open to revising revenue projections once the company provides more details on the opportunities their cash position and Ligado spectrum acquisition may create. AST now has a market capitalisation of $5.7 billion and significant share price momentum over the past year (up over 540 per cent).
Other posts by Chris Forrester:
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