After posting big gains in yesterday’s trading, AST SpaceMobile (ASTS -5.22%) stock is surging again Wednesday. The space-based telecommunications company’s share price was up 14.8% as of 1:30 p.m. ET, and had been up as much as 17% earlier in the daily session.
AST is gaining thanks to multiple positive catalysts. In addition to price target increases from two analysts, investors are also feeling more bullish about space industry stocks following comments from President Trump in his speech to Congress last night.
AST stock jumps as analysts raise their price targets
In new coverage published before the market opened this morning, UBS maintained a buy rating on AST stock and raised its one-year price target from $31 per share to $38 per share. The firm’s lead analyst on the stock, Christopher Schoell, said that new service deals and ramping satellite production made the stock a worthwhile investment despite the high degree of risk involved.
Scotiabank also increased its price target on AST in coverage this morning, raising its one-year forecast from $40.20 per share to $47.90 per share and maintaining an outperform rating on the stock. The firm’s analysts pointed to recent fundraising success paving the way for the company to move forward with the manufacturing of 40 new satellites and its partnership with Vodafone as reasons for its increasingly bullish stance.
Trump’s comments are also lifting AST stock
In his speech to Congress last night, President Trump once again indicated a commitment to expanding U.S. space exploration initiatives. Space stocks are getting a boost from the president’s comments, and AST is participating in the rally. As a provider of satellite-based communications services, it’s possible that the company will see direct and indirect bullish catalysts from federal space initiatives.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool recommends Bank Of Nova Scotia and Vodafone Group Public. The Motley Fool has a disclosure policy.
