AST SpaceMobile $ASTS Target Raised to $62 by Zacks Amid Neutral Rating

The recent upward revision of AST SpaceMobile’s (ASTS) price target by Zacks Research to $62 from $56, while maintaining a neutral rating, underscores a growing confidence in the company’s potential within the satellite-to-mobile communications sector. This adjustment reflects a nuanced balance between optimism for the firm’s technological advancements and a cautious stance on its current valuation and operational risks. As the space industry garners increasing attention in 2025, AST SpaceMobile stands at a pivotal juncture, with its stock price surging 121.5% in the first half of the year, driven by expansion moves and sector-wide enthusiasm. Yet, beneath the surface of this rally lies a complex interplay of high expectations and tangible challenges that warrant a closer examination.

Understanding the Valuation Surge

AST SpaceMobile’s remarkable stock performance in 2025, particularly in June, has positioned it as a standout in the telecommunications and space technology arena. The company’s focus on providing mobile broadband via satellite, a field with significant growth potential, has fuelled investor interest. Zacks Consensus Estimates project a staggering sales growth of 1314.6% for ASTS in 2025, albeit from a relatively small base. This forecast highlights the anticipated scale-up in the second half of the year, as the firm aims to deploy its Block 2 BlueBird satellites and expand its partner network. However, the same estimates also predict a decline in earnings per share, pointing to the high costs and operational hurdles associated with such ambitious growth.

Comparing this to historical performance, ASTS reported minimal revenue in Q4 2024 (October to December), with ongoing losses as it invested heavily in infrastructure. The projected revenue spike in 2025 suggests a turning point, but the path to profitability remains uncertain. The neutral rating from analysts, despite the raised price target, likely reflects this tension between long-term potential and near-term financial strain.

Analyst Sentiment and Market Dynamics

Beyond Zacks Research, other financial institutions have also weighed in on AST SpaceMobile’s prospects in 2025. Bank of America initiated coverage with a $55 price target and a neutral rating in June, while Deutsche Bank reiterated a buy rating with a $63 target as early as September 2024. These assessments indicate a spectrum of optimism tempered by concerns over valuation. Posts found on social media platforms like X have echoed this sentiment, with users such as @spacanpanman noting the unusual bullishness of neutral ratings, which suggests analysts may see upside potential but remain wary of overvaluation risks.

Short interest data further illustrates the market’s divided opinion. As of mid-July 2025, short interest stood at approximately 39 million shares, with borrow rates fluctuating between 1.01% and 1.35%. This indicates persistent scepticism among some investors, even as the stock hits all-time highs of $54.18. The high short interest, juxtaposed with low implied volatility, could set the stage for significant price swings, particularly around key milestones such as satellite launches or regulatory approvals.

Strategic Developments and Risks

AST SpaceMobile’s strategic moves in 2025 include critical partnerships and spectrum transactions that could shape its trajectory. A notable development is the potential approval for US commercial service in early Q4 2025 (October to December), as inferred from recent FCC feeder link testing applications. Additionally, the confirmation hearing for a spectrum transaction with Ligado, scheduled for August 2025, could unlock significant value, with estimates placing the L-band spectrum’s worth between $10 billion and $15 billion. Given ASTS’s current market capitalisation of $17.2 billion, this transaction could be a substantial catalyst if completed successfully.

However, risks abound. The company’s business model relies on unproven technology at scale, and any delays in satellite deployment or regulatory setbacks could dampen investor confidence. Moreover, the projected decline in earnings per share for 2025, despite revenue growth, underscores the capital-intensive nature of the industry. Competitors like Viasat, with a more modest sales growth projection of 2.7% for 2025, may pose a threat if ASTS fails to execute on its ambitious plans.

Financial Snapshot

The table below summarises key financial metrics and analyst projections for AST SpaceMobile as of mid-2025:

Conclusion: Balancing Optimism with Prudence

The revised price target of $62 by Zacks Research for AST SpaceMobile reflects a measured optimism about the company’s role in the evolving space-to-mobile communications landscape. While the stock’s meteoric rise in 2025 and projected sales growth paint a promising picture, the neutral rating serves as a reminder of the inherent uncertainties. Investors must weigh the potential of groundbreaking technology and strategic partnerships against the realities of operational costs and competitive pressures. As ASTS navigates critical milestones in the coming quarters, the market’s verdict will hinge on execution rather than enthusiasm alone. A touch of dry wit might suggest that, in the space race, reaching orbit is impressive, but landing safely is what counts.

References

Archyde. (2025, July 17). AST SpaceMobile vs. Viasat: Mobile Broadband Battle. Retrieved from https://archyde.com/ast-spacemobile-vs-viasat-mobile-broadband-battle

Investing.com. (2025, July 17). AST SpaceMobile Stock Hits All-Time High at 54.18 USD. Retrieved from https://www.investing.com/news/company-news/ast-spacemobile-stock-hits-alltime-high-at-5418-usd-93CH-4140011

spacanpanman [@spacanpanman]. (2024, September 12). Deutsche Bank reiterated buy on ASTS with a $63 price target [Post]. X. https://x.com/spacanpanman/status/1833928841032520124

spacanpanman [@spacanpanman]. (2025, June 20). This BofA note on ASTS is very telling. It’s rare for an investment bank to initiate coverage with a neutral rating… [Post]. X. https://x.com/spacanpanman/status/1920474861794734084

spacanpanman [@spacanpanman]. (2025, July 10). Something to watch is the Ligado confirmation hearing on August 6th [Post]. X. https://x.com/spacanpanman/status/1932602098090192946

spacanpanman [@spacanpanman]. (2025, July 17). ASTS short interest sits at ~39M shares… [Post]. X. https://x.com/spacanpanman/status/1937868335267398104

spacanpanman [@spacanpanman]. (2025, July 22). Inferred from their FCC feeder link testing application, US commercial service approval could come in early Q4 [Post]. X. https://x.com/spacanpanman/status/1940505468939739350

StockInvest.us. (2025). AST SpaceMobile Inc (ASTS) Stock Forecast. Retrieved July 2025, from https://stockinvest.us/stock/ASTS

The Motley Fool. (2025, July 14). You Need to Know This Before Buying or Selling AST SpaceMobile Stock. Retrieved from https://www.fool.com/investing/2025/07/14/you-need-to-know-this-before-buying-or-selling-ast/

TipRanks. (2025). AST SpaceMobile (ASTS) Stock Forecast & Price Target. Retrieved July 2025, from https://www.tipranks.com/stocks/asts/forecast

Yahoo Finance. (2025). AST SpaceMobile, Inc. (ASTS). Retrieved July 2025, from https://finance.yahoo.com/quote/ASTS/

Yahoo Finance. (2025, July 17). Why AST SpaceMobile Skyrocketed 121.5% in the First Half of 2025. Retrieved from https://finance.yahoo.com/news/why-ast-spacemobile-skyrocketed-121-110500047.html

Zacks Investment Research. (2025). AST SpaceMobile, Inc. (ASTS) Price Target & Stock Forecast. Retrieved July 2025, from https://www.zacks.com/stock/research/ASTS/price-target-stock-forecast

Zacks Investment Research. (2025). AST SpaceMobile, Inc. (ASTS) Stock Style Scores. Retrieved July 2025, from https://www.zacks.com/stock/research/ASTS/stock-style-scores