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AST SpaceMobile‘s (NASDAQ: ASTS) Shares are up nearly 360% over the past 12 months. Bulls embraced the maker of low-Earth orbit (LEO) satellites as it launched its first batch of commercial satellites and secured new contracts.
But the five Wall Street analysts who cover AST still think it could go higher. All rate the stock a buy or strong buy, and the most bullish analysts Deutsche Bank expect it to rise from its current price of $22 to $53.
Deutsche Bank expects AST to generate nearly $3 billion in revenue from its Northern Hemisphere markets and another $1.5 billion in revenue from its equatorial markets by 2030. A major catalyst is its new 10 years with Vodafonewhich would increase its presence in Europe, Africa, India and the Middle East.
If AST generates revenue of $4.5 billion by 2030, that would represent a compound annual growth rate (CAGR) of 211% of its estimated revenue of $5 billion by 2024. That would be a remarkable growth trajectory, whereby thing you should buy AST shares while they are. are they still trading well below Wall Street’s most optimistic price target?
AST’s LEO satellites can provide cellular 2G, 4G and 5G connections in areas that cannot be easily served by terrestrial tower networks. It primarily delivers its data through low-band spectrum, which operates at lower speeds but has wider coverage areas than the high-band spectrum used by its closest rival, Starlink.
AT&T i Verizon Communicationsoffering low-band 5G connections, partnered with AST SpaceMobile last year. Its recent deal with Vodafone further expands its reach overseas. T-Mobilewhich primarily provides its 5G services using high-band spectrum, partnered with Starlink in 2022.
AST launched its first five commercial Block 1 BlueBird (BB1) satellites last September. That much-anticipated event marked his first step toward generating consistent business revenue. The company aims to launch its first four Block 2 BlueBird (BB2) satellites, which are 3.5 times larger than its BB1 satellites and can process about 10 times more data, in the first quarter of 2025.
Eventually, AST plans to launch 17 BB2 satellites and expand this “constellation” to 243 LEO satellites in the long term. However, this massive expansion would require broader approval from the Federal Communications Commission (FCC).
By 2024, analysts expect AST to generate just $5 million in revenue as it racks up a net loss of $426 million. But from 2024 to 2026, they expect their revenue to grow at a CAGR of 761% to $371 million as it narrows its annual net loss to $95 million.
