Clear Street has recommended investors buy AST SpaceMobile stock, arguing the company’s sharp decline from its May peak represents a temporary setback rather than a fundamental problem.
The brokerage said the pullback was driven by disruptions involving third-party launch vehicles, not by lost customer contracts or a slowdown in demand for direct-to-device satellite connectivity.
Clear Street expects mobile carriers to increasingly adopt AST SpaceMobile’s technology as competition intensifies and operators look to retain subscribers by expanding coverage beyond traditional cellular networks.
ASTS stock edged 0.5% higher in pre-market trading at the time of writing and is on track for its first weekly gain in three weeks.
Wall Street’s average 12-month price target for ASTS currently stands at $83.32, implying more than 34% upside from current levels.
The bullish call comes as AT&T CEO John Stankey said during the carrier’s second-quarter earnings call that its partnership with AST SpaceMobile is moving closer to a customer-ready product.
The two companies are developing a service that will allow standard, unmodified smartphones to connect directly to satellites when users move outside terrestrial cellular coverage.
AST SpaceMobile recently secured regulatory approval to operate its SpaceMobile satellite constellation in Brazil through September 2039, covering up to 248 satellites.
The company also received approval for spectrum leasing agreements with AT&T, Verizon, and FirstNet, enabling satellite-to-smartphone connectivity using portions of the 700 MHz and 800 MHz spectrum bands.
The Midland Development Corporation in Texas approved an agreement offering up to $66 million in performance-based incentives over 30 years to support a new 400,000-square-foot satellite manufacturing facility.
AST SpaceMobile also completed a $1 billion convertible senior notes offering, raising around $983.6 million in net proceeds to fund growth initiatives and secure additional launch capacity.
Wall Street expects AST SpaceMobile to report June-quarter revenue of $34.4 million, up sharply from $1.16 million a year earlier, according to Fiscal.ai.
The company’s loss per share is projected to narrow to $0.23 from $0.41 in the same period, with second-quarter results expected next month.
Short interest in ASTS has climbed to 21.7%, the highest level since October 2024, according to Koyfin data, reflecting continued skepticism from bearish traders.
Retail sentiment for ASTS on Stocktwits turned neutral from bullish a day earlier, and the stock has declined around 26% so far this year.
