UBS says this high-risk space stock could rally 50%

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Investment Strategy,Stock Markets,AST Spacemobile Inc

AST's shares have skyrocketed about 268% over the past month after the company announced a partnership with Verizon in late May, adding to its AT&T deal.

Texas-based satellite manufacturer AST Spacemobile is a risky — but worthwhile — investment, according to UBS. AST, which went public via a special purpose acquisition company, or SPAC, in 2021, is building satellites to provide a space-based broadband network to unmodified smartphones. Analyst Christopher Schoell increased his price target for the stock by $6 to $13, implying a whopping 50.8% potential upside as of Friday's close.

"That said, recent partner deals, progress on funding needs and positive regulatory developments give us increased conviction and we are increasing our estimates & valuation multiple." The analyst said he sees several other catalysts ahead for the stock, including the launch of AST's first five commercial satellites and the Federal Communications Commission's "Supplemental Coverage from Space" order that became effective on May 30.

 

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