AST SpaceMobile (ASTS) takes a step closer to revolutionizing the telecommunications industry with a space-based satellite network designed to provide cellular connectivity at 4G/5G speeds everywhere on the planet. The company has confirmed that it is on track to launch the first five of its groundbreaking Bluebird satellites on September 12 from Cape Canaveral. This significant milestone in its mission is a step toward the company’s ambition of launching six satellites a month by 2025.
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With an extensive portfolio of over 3,400 patents, AST’s technology is groundbreaking. Further, strategic investments from top-notch companies such as AT&T (T), Verizon (VZ), Google (GOOGL), and Vodafone (VOD) and agreements with more than 45 mobile network operators globally have the company well-positioned to transform telecommunications as we know it. The stock is up over 362% so far this year and holds the potential to continue its upward trajectory.
The imminent launch of its BlueBird satellites indicates this bold enterprise may be on the verge of introducing a new era in global telecommunications, making it an exciting opportunity for forward-looking investors.
AST SpaceMobile’s Daunting Mission
AST SpaceMobile is developing a space-based cellular broadband network for cellular broadband services to end-users globally. The company has secured strategic investments from prominent partners, including the United States Government, and partnerships with over 45 mobile network operators worldwide, catering to around 2.8 billion existing subscribers. Its mission is to bridge the daunting connectivity gap for the five billion mobile subscribers in the world today.
The company’s upcoming satellite launch is a crucial step forward in this mission. These satellites, named BlueBirds, will be the first commercial satellites with the largest-ever communications arrays to be deployed in low Earth orbit. They will provide non-continuous cellular broadband service across the United States and selected global markets. The Bluebirds are designed to reach standard smartphones directly at cellular broadband speeds for voice, data, video, and other non-communications government applications.
The company boasts an impressive liquidity of over $440.0 million in cash, cash equivalents, and restricted cash. This includes over $155.0 million in expected warrant exchange proceeds, reinforcing the company’s financial stature. The company also holds an additional liquidity source with $51.5 million in gross proceeds through the Senior Secured Credit Facility. These funds are earmarked towards bolstering near-term operational initiatives, ensuring the cash payment of interest under the Subordinated Convertible Notes, and towards the early retirement of the Senior Secured Credit Facility.
The company remains engaged in discussions with quasi-governmental entities and strategic partners for non-dilutive capital injections.
Is ASTS a Buy?
The stock has been on a rocket ride upward, climbing almost 590% in the past year. It trades near the upper middle of its 52-week price range of $1.97 – $39.08 while showing positive price momentum over the 50-day (22.65) and 100-day (16.81) moving averages. The upside growth potential of the stock is reflected in the P/B ratio of 29.11x, a healthy premium relative to the Communication Equipment industry average of 2.8x.
Analysts covering the company have been bullish on ASTS stock. For instance, Deutsche Bank analyst Bryan Kraft recently reiterated a Buy rating and dramatically raised the firm’s price target to $63 from $22, noting the new valuation is warranted given progress toward launching its first block of five commercial satellites and formalizing partnerships with its leading strategic partners.
Overall, AST SpaceMobile is rated a Strong Buy based on three analysts’ recent recommendations and price targets. The average price target for ASTS stock is $37.30, representing a potential upside of 33.69% from current levels.
Final Analysis on ASTS
AST SpaceMobile is inching closer to reshaping the telecom world with its revolutionary space-based satellite network. With the imminent launch of five Bluebird satellites, the company is rapidly emerging as an enticing prospect for future-focused investors.
