Clear Street has recommended buying AST SpaceMobile (NASDAQ: ASTS) stock, arguing that its roughly 50% pullback from its May peak reflects temporary disruptions rather than any structural deterioration.
The brokerage said the selloff has been driven by disruptions involving third-party launch vehicles, not by lost customer contracts or a slowdown in demand for direct-to-device satellite connectivity.
Clear Street expects mobile carriers to increasingly adopt AST SpaceMobile’s technology as competition intensifies and operators look to retain subscribers by expanding coverage beyond traditional cellular networks.
Wall Street’s average 12-month price target currently stands at $83.32, implying more than 34% upside from where the stock is presently trading.
At the time of publication, ASTS stock edged 0.5% higher in pre-market trading and was on track for its first weekly gain in three weeks.
AT&T CEO John Stankey said during the carrier’s second-quarter earnings call that its partnership with AST SpaceMobile is moving closer to a customer-ready product, signaling meaningful commercial progress.
The two companies are developing a service that will allow standard, unmodified smartphones to connect directly to satellites when users move outside terrestrial cellular coverage areas.
AST SpaceMobile also recently secured regulatory approval to operate its SpaceMobile satellite constellation in Brazil through September 2039, covering up to 248 satellites.
The company additionally received approval for spectrum leasing agreements with AT&T, Verizon, and FirstNet, enabling satellite-to-smartphone connectivity using portions of the 700 MHz and 800 MHz spectrum bands.
On the manufacturing front, the Midland Development Corporation in Texas approved an agreement offering up to $66 million in performance-based incentives over 30 years to support a new 400,000-square-foot satellite manufacturing facility.
AST SpaceMobile also completed a $1 billion convertible senior notes offering, raising around $983.6 million in net proceeds to fund growth initiatives and secure additional launch capacity.
Wall Street expects AST SpaceMobile to report June-quarter revenue of $34.4 million, up sharply from $1.16 million a year earlier, according to Fiscal.ai.
Its loss per share is projected to narrow to $0.23 from $0.41 during the same period, reflecting improving operational efficiency as the company scales its satellite network.
Short interest has climbed to 21.7%, the highest level since October 2024, according to Koyfin data, underscoring the divided sentiment surrounding the stock.
Retail sentiment for ASTS on Stocktwits turned neutral from bullish, and the stock has declined around 26% so far this year despite the renewed institutional interest.
