Scotiabank on AST Spacemobile (ASTS): Bluebird 7 failure underscores 'structural concerns'

Scotiabank analyst Andres Coello reiterated a Sector Underperform rating and $41.20 price target on AST Spacemobile (NASDAQ: ASTS)

The analyst commented, "On April 9, 2026, a building in Blue Origin’s Rocket Park testing facility on Merritt Island was damaged by an explosion. Usually, when such a concerning accident happens in a testing facility, launching platforms delay operations until there is full clarity on the technical implications of the explosion. For example, in 2023, United Launch Alliance suspended the debut of its Vulcan rocket after a fireball engulfed a test stand at Marshall Space Flight Center in Alabama, delaying the launch by eight months. Whether the Rocket Park explosion is connected to the NG3 mission failure is beside the point, in our view. We think Bezos’s rush to narrow the gulf that now separates his space ventures from Musk’s SpaceX may be behind controversial decisions, such as paying a 29x 2027 EV/sales premium for Globalstar or pressing ahead with the NG3 launch. Although the New Glenn’s reusable booster, dubbed “Never Tell Me the Odds”, landed successfully, the mission was a failure as SpaceMobile’s Bluebird 7 satellite didn’t deploy in nominal orbit. We understand the insurance company will cover the cost of the satellite, but this new setback underscores structural concerns. Sell, US$41.20/share target."

For an analyst ratings summary and ratings history on AST Spacemobile click here. For more ratings news on AST Spacemobile click here.

Shares of AST Spacemobile closed at $85.53 yesterday.

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