What's Behind The Recent Rally In AST SpaceMobile Stock?

AST SpaceMobile, Inc. ASTS shares are trading 5% higher on Monday, adding to gains of more than 14% over the past month. Here’s a look at what’s driving the recent price action:

What To Know: AST shares received a boost in mid-June when the company disclosed a Settlement Term Sheet with Ligado Networks, Viasat and Inmarsat, securing long-term access to a significant portion of wireless spectrum for its satellite-to-smartphone service.

The deal grants AST more than 80 years of access to up to 45 MHz of lower mid-band spectrum throughout the U.S. and Canada. The company called it the largest block of premium nationwide spectrum available for direct-to-device use.

Later in June, the stock received another boost after the company announced a deal with India's leading telecom service provider Vi (Vodafone Idea). The deal creates a strategic partnership between AST SpaceMobile and Vi to bring mobile connectivity to underserved areas in India through direct-to-device satellite broadband technology.

AST and Vi will work together on the SpaceMobile Satellite System to enhance Vi's telecom reach. AST will handle the development, production and operation of the satellite network, while Vi will manage terrestrial integration and spectrum use.

Throughout the month, analysts from several firms have also weighed in. Here’s a look at analyst calls from recent weeks.

• BofA Securities analyst Michael Funk initiated coverage on AST with a Neutral rating and announced a price target of $55.
• Scotiabank analyst Andres Coello downgraded AST from a Sector Outperform rating to a Sector Perform rating and announced a $45.40 price target.
• B. Riley Securities analyst Mike Crawford maintained a Buy rating on AST and raised the price target from $36 to $44.

The consensus price target is $41.49, with the lowest price target at $15 and the highest price target at $63.

AST Price Action: At the time of writing, AST shares are trading 5.05% higher at $48.88, according to data from Benzinga Pro

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