ASTS shares by 17% after the analyst renewal News ad

The shares of the company for cellular broadband communication based on satellites AST SpaceBile Inc. NASDAQ: ASTS On February 26, 2025, who lived almost 17% in morning trade, after the analysts of the Cantor Fitzgerald raised the company’s rating before the rating of a strong purchase a day before, and the company announced its last major contract.

Cantor is only the second company Wall Street, which will still overestimate its ASTS promotion rating in 2025, but it joins a number of other institutions that are already generally optimistic in relation to the company, which has become the best choice in the space race.

While investors, without a doubt, were collected by Kantor’s update, there are many other convincing reasons why ASTS shares are allocated among firms seeking to develop business in the space, even if it remains mainly at the stage of finishing, AST Spacemobile successfully completed a number of important operating stages that allowed him to conclude multiple critical contracts.

In addition, the space market is largely unused and rapidly growing, with several companies such as Redwire Corp. NYSE: RDW and Rocket Lab USA Inc. NASDAQ: RKLB In an effort to strengthen their positions in different niches. AST, it seems, is increasingly playing a significant role in providing broadband communication based on clients from customers from the range of traditional services.

Satellite launches and contracts with an analyst analyst analyst.

Although AST has not yet completely launched its activities, its shares price increased by 824% per year leading to February 26, largely thanks to a series of successful commercial satellite launches in September and October 2024. These developments give the company critical infrastructure on the spot in order to begin to surpass the service and prove that AST technology is capable of.

The company also received numerous new contracts, since its infrastructure is becoming more and more reliable. On February 26, and probably also contributed to the surge of shares, AST announced that he received a subcontract of $ 43 million per prize of the US space development agency. The company has already succeeded in a state contract with the participation of the Bluewalker-3 satellite, launched in 2022. Although AST did not disclose many details related to the terms of this last contract agreement, it may apparently be related to the service of the communication architecture of the direct cell and its ability to support earthly missions within the framework of the Warfighter Space Architecture Programm.

The presence of a second such agreement can signal that the capabilities of AST apply to the government space than previously expected, since the company, as a rule, positions itself as a commercial company for broadband services.

Telecom partnerships remain promising

In addition to growing partnerships with space force, AST also has many agreements with large telecommunication companies that should help ensure the widespread use of its services, since they continue to enter the Internet. Like T-Mobile US Inc. NASDAQ: TMUS He began his partnership with Starlink Elon Musk, other 5G suppliers, including Verizon Communications Inc. NYSE: VZ and at & t inc. NYSE: T. They rushed to the partnership with AST. Vodafone also announced a major 10-year agreement with AST at the end of 2024, which should provide an additional service in markets around the world.

More infrastructure extensions in anticipation, but the risks remain

The January resolution from the FCC gave AST the key move to start testing its previously neglected satellites in Verizon and AT&T NETWORKS. The company plans to launch a new batch of satellites, probably later in this quarter. If these steps go smoothly, AST will be closer to fully operational.

Investors may still want to remember a couple of things before plunging into the ASTS position. First, the shares remain very unstable; Despite the blow on February 26, they remain more than 6% for a five -day period leading to that day. In addition, a short interest in ASTS shares is significant. As of February 26, short interest amounts to more than 42.7 million shares, which is 30.1% by 30.1% for the previous month. Can AST Spacemobile continue to fly at a height or if bear investors can be correct with their fluctuations is still unknown.

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