#6 - AST SpaceMobile (NASDAQ:ASTS)
AST SpaceMobile, Inc. (NASDAQ: ASTS) is working to develop “the world’s first and only space-based cellular broadband network.” The benefit of such a network is that, if successful, it will provide uninterrupted coverage directly from space which will make broadband accessible to all.
For the company to be successful, it will first have to launch a series of satellites. In the first phase, the company plans to launch 25 satellites in the next three years.
The risk is that it will take capital to launch these satellites, and there are concerns that the company will have to take on debt – and dilute its shares – in order to ensure the launches go off as scheduled. In late June, the company raised $59.4 million through the sale of 12.5 million shares. The announcement included a 30-day option for Barclays to buy an additional 1.875 shares.
Nevertheless, AST SpaceMobile analyst ratings on MarketBeat give ASTS stock a Buy rating with a 427% upside in the next 12 to 18 months. It’s a moonshot to be sure, but one that may be worth taking.
About AST SpaceMobile
AST SpaceMobile, Inc, together with its subsidiaries, develops and provides access to a space-based cellular broadband network for smartphones in the United States. Its SpaceMobile service provides cellular broadband services to end-users who are out of terrestrial cellular coverage. The company was founded in 2017 and is headquartered in Midland, Texas.
- Current Price
- $24.10
- Consensus Rating
- Buy
- Ratings Breakdown
- 4 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $43.68 (81.2% Upside)
