AST SpaceMobile ASTS stock surged 11% on Wednesday after Berenberg Bank initiated coverage of the satellite connectivity company with a Buy rating and a $92 price target.
The target implies roughly 65% upside from the stock’s previous close.
Berenberg highlighted AST SpaceMobile’s ability to provide cellular broadband connectivity from space directly to unmodified smartphones as a key competitive advantage.
The German investment bank said the company is the only one to have demonstrated what it considers true cellular broadband connectivity from space to standard smartphones.
The coverage comes as Berenberg expands its focus on the space sector, with the firm identifying AST SpaceMobile, Rocket Lab and Planet Labs as companies positioned to benefit from the industry’s expected growth.
AST SpaceMobile builds commercial network
Berenberg expects AST SpaceMobile to begin scaling commercial operations meaningfully in 2027.
The company has more than 60 mobile network operator partnerships covering approximately 3 billion potential subscribers.
The company also has access to low-band spectrum, along with owned L-band and S-band spectrum.
Its operations additionally include a growing government and defense business.
Berenberg said AST SpaceMobile complements rather than competes directly with mobile carriers including AT&T, Verizon Communications, Vodafone Group and Rakuten Group.
The firm expects the company to achieve rapid revenue growth and high margins once continuous service launches in 2027.
The brokerage also pointed to the company’s partnerships and spectrum assets as advantages that competitors do not have.
Berenberg described the stock’s risk-reward profile as asymmetric and identified multiple potential catalysts ahead.
Space economy expected to exceed $1 trillion
Berenberg’s initiation of coverage on AST SpaceMobile was part of a broader assessment of the space industry.
Analyst Michael Filatov initiated coverage of AST SpaceMobile, Rocket Lab and Planet Labs with Buy ratings.
According to the firm, the global space economy surpassed $500 billion in 2025 and is expected to exceed $1 trillion by 2030. Berenberg attributed the expected expansion to falling launch costs and accelerating commercialization across the sector.
The brokerage said it favors businesses with “vertically integrated launch” capabilities, referring to companies that control more of their launch supply chain. It also prefers satellite networks and technologies that are difficult for competitors to replicate.
AST SpaceMobile’s direct-to-smartphone connectivity fits into that broader investment framework, according to Berenberg, while its existing carrier relationships provide a commercial foundation ahead of its planned service expansion.
Analysts remain mixed on ASTS outlook
While Berenberg took a bullish view, other analysts have maintained more cautious positions on AST SpaceMobile.
UBS maintained a Neutral rating on Aug. 11 while lowering its forecast to $78. Piper Sandler retained an Overweight rating on the same day but reduced its forecast to $98.
The differing views come as AST SpaceMobile approaches its expected 2027 commercial expansion.
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 also among the space stocks in focus alongside Rocket Lab and Planet Labs following Berenberg’s sector coverage.
The broader industry outlook is being supported by lower launch costs, while investors continue to assess which companies can translate technological capabilities into sustainable commercial growth.
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