AST SpaceMobile (ASTS) drew renewed investor attention Wednesday after Scotiabank upgraded the stock and cited expanding satellite pipeline and telecom partnerships as proof of its “global reach and impressive technology.”
Scotiabank upgraded ASTS to “Sector Perform” from “Underperform” and raised its price target to $50.80 from $41.20, describing the valuation as having entered a “grey area” between $40 and $60 per share.
The upgrade follows a 32% decline in ASTS stock since the beginning of the year, with the analyst suggesting opportunities and risks are now more fairly reflected in the share price.
The brokerage’s move came after Clear Street previously recommended buying the stock, arguing that its pullback from May highs was driven by temporary launch-related delays rather than weakening demand.
A key catalyst behind the upgrade is the possibility that AST SpaceMobile could launch a beta service in the U.S. before the end of 2026 after several years of delays.
AST SpaceMobile expects to begin beta Direct-to-Device mobile broadband services with AT&T and Verizon within that same timeframe, marking a significant commercial milestone for the company.
AT&T CEO John Stankey said last week that the partnership is moving closer to a customer-ready service that will let regular smartphones connect directly to satellites when outside normal cellular coverage.
Scotiabank also flagged the Rakuten joint venture initiative to build a subsidized direct-to-device satellite network as further evidence of AST SpaceMobile’s growing international footprint and technology credibility.
That joint venture would own and operate satellites for direct-to-mobile communications, creating a potential competitor to SpaceX’s Starlink-based offerings in what is becoming an increasingly crowded low-Earth orbit market.
On Tuesday, AST SpaceMobile announced that BlueBird satellites 11, 12, and 13 are scheduled for launch on Aug. 5, 2026, from Cape Canaveral aboard a Falcon 9 rocket.
Those satellites are expected to support voice, data, and video services directly to standard smartphones and deliver nearly double the peak download speeds of the company’s earlier Block 1 satellites.
The company currently holds agreements with nearly 60 mobile network operators serving more than 3 billion subscribers, including AT&T, Verizon, Vodafone, Rakuten, Google, Bell, Telus, STC Group, and American Tower.
Despite the upgrade, retail sentiment surrounding ASTS on Stocktwits remained “bearish” over the past 24 hours, though some users expressed conviction in the company’s longer-term commercial potential.
One user said that if AST successfully turns its network into a commercial platform, the valuation gap could look very different over the next few years.
Another user took a more direct position, calling the stock “way undervalued” even as shares remain down more than 32% so far this year.
ASTS stock traded higher by 2.2% at the time the original report was published, suggesting some investors welcomed Scotiabank’s more constructive stance on the satellite connectivity company.
