Why Is AST SpaceMobile Stock Up 13% Today?
Key Points
Berenberg initiated coverage of AST SpaceMobile (ASTS) with a Buy rating and a $92 price target on Sept. 2, 2026, sending shares up 12.4% by early afternoon.
The $92 target implies roughly 51% upside from ASTS's price around midday on Sept. 2, 2026.
AST SpaceMobile posted $31.5 million in revenue and a $230.9 million net loss last quarter, with $2.7 billion in cash against roughly $3 billion in long-term debt.
AST SpaceMobile (NASDAQ: ASTS) stock is up 13% as of 3:22 p.m. ET on Wednesday, Sept. 2, 2026, after Berenberg initiated coverage with a Buy rating.
The S&P 500 and Nasdaq Composite are both up so far in Wednesday's trading, jumping 0.4% and 0.3%, respectively.
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Berenberg's $92 target implies about 50% upside for AST SpaceMobile
The satellite-communications stock is up after analysts at Berinberg initiated coverage, calling it a Buy and setting a $92 price target -- a roughly 50% upside from the stock's price around midday.
The bank believes that AST can turn its satellite network into a healthy commercial business and that its direct-to-device model plays well with the core service from existing terrestrial communication giants like Verizon and AT&T Inc., rather than trying to compete with them directly.
AST SpaceMobile's revenue jumped, but so did its losses and debt
In its most recent quarter, the company reported $31.5 million in revenue, a huge year-over-year jump. However, it also reported a $230.9 million net loss and $2.7 billion in cash against roughly $3 billion in long-term debt.
Image source: Getty Images.
This is an extremely capital-intensive business, and unlike its competition, the company doesn't have a launch business to help offset the costs. Still, I think there is an opportunity here if you keep your allocation small and accept the fact that there is substantial execution risk.
Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AST SpaceMobile. The Motley Fool has a disclosure policy.