Scotiabank Downgrades AST SpaceMobile (ASTS) Stock to Sector Perform
AST SpaceMobile, Inc. (NASDAQ:ASTS) is one of the 10 Unstoppable Stocks to Buy According to Hedge Funds. On June 23, Scotiabank downgraded AST SpaceMobile, Inc. (NASDAQ:ASTS)'s stock to 'Sector Perform' from 'Outperform' with an unchanged price target of $45.40, as reported by The Fly. The firm hinted at the valuation for this downgrade after the stock's impressive rally. On a YTD basis, the company's stock has seen a run-up of over ~131%. While the firm can't be more optimistic regarding the prospects for such valuable technology, it doesn't see new reasons to increase the price target higher. The firm cites valuation for the downgrade with the shares above the price target following the 'impressive rally.'
An aerial view of a communications satellite in orbit, beaming its signal down to Earth.
As per the firm analyst, the launch of FM1 from India, along with the subsequent launching campaign, would be testing AST SpaceMobile, Inc. (NASDAQ:ASTS)'s capability to orbit dozens of satellites. Furthermore, the competition with Starlink and Globalstar can also heat up, added the firm. However, Vi, India's leading telecom service provider, and AST SpaceMobile, Inc. (NASDAQ:ASTS) announced a partnership focused on expanding mobile connectivity throughout India's unconnected regions.
The partnership is expected to bring together Vi's strong national network with AST SpaceMobile, Inc. (NASDAQ:ASTS)'s revolutionary space-based cellular technology. Commercially, AST SpaceMobile, Inc. (NASDAQ: ASTS) has expanded its US Government opportunity and is in a position to begin garnering revenue during 2025.
While we acknowledge the potential of ASTS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ASTS and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now
Disclosure: None.
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