Scotiabank Downgrades AST SpaceMobile (ASTS) to Underperform, Calling Valuation “Irrational” with $45.60 PT

AST SpaceMobile Inc. (NASDAQ:ASTS) is one of the hot tech stocks to invest in. On January 7, Scotiabank downgraded AST SpaceMobile to Underperform from Sector Perform with a $45.60 price target. The firm argued that AST SpaceMobile’s stock has surged to irrational levels, and a more realistic valuation falls between $45 and $55. While the company’s tech is impressive, Scotiabank expressed skepticism regarding its execution. With evidence of slow adoption in major markets, low ARPU, and high ongoing capital requirements, the firm believes that investors may have to wait until 2028 or 2029 to see significant cash flow.

Additionally, on December 23, AST SpaceMobile achieved a milestone in telecom with the successful orbital launch of BlueBird 6. Spanning ~2,400 square feet, BlueBird 6 is officially the largest commercial communications array ever deployed in low Earth orbit. It is more than 3x the size and offers 10x the capacity of the company’s previous five satellites currently in orbit.

The satellite is engineered to provide peak data rates of up to 120 Mbps directly to standard, unmodified mobile devices, bypassing the need for specialized hardware. This tech supports high-speed 4G and 5G cellular broadband, including voice, full data, and video applications for both commercial and government use.

AST SpaceMobile Inc. (NASDAQ:ASTS), together with its subsidiaries, designs and develops a constellation of BlueBird satellites in the US.

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Disclosure: None. This article is originally published at Insider Monkey.