Piper Sandler cuts AST Spacemobile stock rating on launch concerns

Piper Sandler has reduced its stock rating for AST Spacemobile (NASDAQ:ASTS) to Neutral from Overweight, lowering its price target to $54.00 from $98.00. The firm attributes the downgrade to lower confidence in the pace of satellite launches in 2026-2027. This comes amid growing concerns from SpaceX, which is expanding its reach in the direct-to-cell market with recent purchases of mobile spectrum valued at approximately $8 billion.

SpaceX's actions could potentially limit launch availability for AST Spacemobile's partners, driving down prices for the company's services. Despite this, the firm remains cautiously optimistic about the company's long-term prospects post-2027, as SpaceX's aggressive stance may boost demand for AST Spacemobile's services among mobile network operators. Analysts' price targets for AST Spacemobile range from $42.50 to $108, indicating a mixed outlook.