The investment bank sets a $92 price target as AST SpaceMobile approaches commercial operations with more than 60 mobile carrier partnerships and a differentiated direct-to-device satellite network.
Berenberg initiated coverage of AST SpaceMobile (ASTS) with a Buy rating and a $92 price target, pointing to the satellite communications company’s technological lead and significant long-term opportunity in direct-to-device connectivity.
The price target represents approximately 65% upside from AST SpaceMobile’s previous closing price of $55.80.
Central to Berenberg’s bullish thesis is AST SpaceMobile’s ability to deliver cellular broadband directly from satellites to standard, unmodified smartphones. The analyst highlighted the company’s technology as a key competitive advantage as AST moves toward broader commercial operations in 2027.
AST SpaceMobile has established partnerships with more than 60 mobile network operators covering roughly three billion subscribers globally. Its carrier relationships include major telecommunications companies such as AT&T, Verizon, Vodafone and Rakuten.
Rather than attempting to replace terrestrial wireless carriers, AST’s business model is designed to complement their existing networks by extending cellular coverage into areas where traditional infrastructure is unavailable or uneconomical.
Berenberg also highlighted AST’s access to premium low-band spectrum, along with its owned L-band and S-band spectrum, as important strategic assets. The company’s growing government and defense business provides another potential source of revenue diversification.
The investment bank sees the combination of AST’s technology, spectrum portfolio and carrier relationships creating a competitive position that could be difficult to replicate.
Berenberg expects the financial profile to change considerably once continuous commercial service begins. The firm sees the potential for rapid revenue growth and unusually strong margins as AST scales its satellite network.
AST also has several potential catalysts ahead as it expands its constellation and moves closer to continuous service.
Berenberg characterized the opportunity as offering an asymmetric risk-reward profile, with substantial execution risk balanced against potentially significant upside if AST successfully commercializes its global space-based cellular broadband network.
