Deutsche Bank raised AST SpaceMobile (ASTS.US) to “buy”: SpaceX spectrum deals affected or misinterpreted by the market

The Zhitong Finance App learned that AST SpaceMobile (ASTS.US) rose before the market, after Deutsche Bank upgraded the telecommunications stock rating from “neutral” to “buy.”

Analyst Bryan Kraft pointed out that the bank downgraded the stock rating in May due to valuation concerns. At that time, the ASTS launch plan was significantly delayed due to the explosion of the New Glenn launch pad. However, it is now believed that recent weak stock prices, many positive developments and catalysts that have been overlooked by the market, and spectral value is estimated to account for all but $10 per share in ASTS's corporate value, making the present a good opportunity to shift to a more positive stance.

Kraft said in the latest report: “We think Friday's 10% drop is a misinterpretation because the 800 MHz spectrum that SpaceX will acquire will not make SpaceX more competitive than ASTS as a D2D mobile network operator partner, and ASTS does not target the direct consumer market (SpaceX will mainly use 800 MHz to serve this market).” “We believe T-Mobile is increasingly likely to move from Starlink to ASTS as its D2D partner (through a joint venture),” he added.

As of press release, ASTS shares rose 3.6% before the market on Monday, after falling 10.5% on Friday due to SpaceX spectrum concerns.