AST SpaceMobile surges as B. Riley raises on valuation after selloff

Seeking Alpha ·

AST SpaceMobile ( ASTS ) up 7.8% in Friday's trading as B. Riley upgrades the satellite designer and manufacturer to Buy from Neutral with an $85 price target after the shares have slumped 44% in the past six months, but the risk/reward calculus

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AST SpaceMobile shares jumped 7.8% after B. Riley upgraded the stock from Neutral to Buy, following a 44% decline over the past six months. B. Riley set a price target of $85, highlighting its undervaluation. This rebound is viewed as a correction from overselling, with the commercialization pace of satellite communication technology remaining the key factor for future recovery.

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The recent upgrade by B. Riley marks a shift in market sentiment for ASTS. After significant downward pressure, the analyst's $85 target suggests a belief that the company is currently priced well below its intrinsic potential. Investors are closely monitoring the technical milestones of their satellite constellation, as successful deployment is critical for revenue realization.

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