AST Spacemobile (ASTS) PT Raised to $60 at Barclays

Barclays analyst Mathieu Robilliard raised the price target on AST Spacemobile (NASDAQ: ASTS) to $60.00 (from $37.00) while maintaining a Overweight rating.

The analyst comments: "We update our estimates post 2Q25 results. While we lower our short-term estimates due to launch delays, our improved medium-term outlook leads us to raise our DCF-derived PT from $37 to $60/share.
We find it supportive that TMUS/Starlink launched a text only service for $10 per month and believe that AST product which will be richer (text, call, broadband) could see higher prices points. Also whilst competition in rising in D2D, the fact that AST will not compete on broadband (nor on mobile) should be a positive attribute for telecom operators that want to team up with a satellite operator.
Our upside case is $120 p/s, which is based notably on a reduction of the cost of capital/expansion of multiples as the company delivers. We flag also our downside case ($5) which reflects the still material operating risks. We currently use a WACC of 14% reflecting the execution and technological risks. Our downside case captures the possibility that the technology does not scale up ($5 valuation p/s). We remain OW."

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