AST SpaceMobile (ASTS) shares climbed 11% on Wednesday after Berenberg Bank initiated coverage with a Buy rating and a $92 price target, implying roughly 65% upside from the prior close. The German investment bank highlighted the company's ability to deliver cellular broadband connectivity from space directly to unmodified smartphones as a key competitive edge.
Berenberg noted that AST SpaceMobile is the only company to have demonstrated what it considers true cellular broadband connectivity from space to standard smartphones. The initiation is part of a broader sector assessment, with the firm also starting coverage on Rocket Lab and Planet Labs with Buy ratings.
Commercial scaling expected by 2027
Berenberg expects AST SpaceMobile to begin meaningful commercial scaling in 2027. The company has more than 60 mobile network operator partnerships, covering approximately 3 billion potential subscribers. It also holds low-band spectrum, along with owned L-band and S-band spectrum, and operates a growing government and defense business.
The brokerage said AST SpaceMobile complements rather than directly competes with mobile carriers such as AT&T, Verizon Communications, Vodafone Group, and Rakuten Group. Berenberg anticipates rapid revenue growth and high margins once continuous service launches in 2027.
Space economy poised to exceed $1 trillion
Berenberg's coverage initiation is part of a broader assessment of the space industry. Analyst Michael Filatov initiated coverage on AST SpaceMobile, Rocket Lab, and Planet Labs with Buy ratings. The firm estimates the global space economy surpassed $500 billion in 2025 and could exceed $1 trillion by 2030, driven by falling launch costs and accelerating commercialization.
Berenberg favors businesses with vertically integrated launch capabilities and satellite networks that are difficult to replicate. AST SpaceMobile's direct-to-smartphone technology fits this framework, while its carrier relationships provide a commercial foundation ahead of planned service expansion.
Mixed analyst views persist
While Berenberg is bullish, other analysts remain cautious. UBS maintained a Neutral rating on Aug. 11 but lowered its price target to $78. Piper Sandler retained an Overweight rating the same day but reduced its target to $98. These differing views come as AST SpaceMobile approaches its expected 2027 commercial expansion.
The company's stock has been volatile as investors weigh its technological achievements against the timeline to revenue generation. Berenberg's bullish case centers on the company's demonstrated satellite-to-smartphone technology, spectrum holdings, carrier partnerships, and potential for revenue growth following the launch of continuous service.
AST SpaceMobile was among the space stocks in focus alongside Rocket Lab and Planet Labs following Berenberg's sector coverage. The broader industry outlook is supported by lower launch costs, while investors continue to assess which companies can translate technological capabilities into sustainable commercial growth.
This article is for informational purposes only and does not constitute financial advice.
