AST Spacemobile (ASTS) PT Lowered to $7.40 at Scotiabank, 'anxiety regarding delays in the launch of the five “Block 1” Blue Bird satellites'

Scotiabank analyst Andres Graham lowered the price target on AST Spacemobile (NASDAQ: ASTS) to $7.40 (from $7.50) while maintaining a Sector Outperform rating.

The analyst commented: 'Despite significant achievements in Q1, there is anxiety regarding delays in the launch of the five “Block 1” Blue Bird satellites, with some investors fearing it would happen in 2025. ASTS clarified that transportation to launch site is expected to happen in July or August to await a launch window, implying a delay of between 30 to 90 days vs. prior guidance. This was due to two specific suppliers, which the company replaced mostly with in-house capabilities, leading to 95% vertical integration (up from 90% before). We see this as moderately negative in terms of narrowing (but not eliminating) the pioneering advantage vs. Starlink, but hardly justifying the selloff. More relevant than this from an equity standpoint was ASTS’ announcement that it has received non-binding letters of interest from three institutions regarding “non-dilutive quasi-governmental funding” (e.g. similar to export credit agencies) necessary to launch the Block 2 satellites'

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