Why AST SpaceMobile stock fell 5% on Thursday

A significant increase in price target from an analyst helped the send AST SpaceMobile (ASTS 4.95%) much higher on the penultimate trading day of the week. Bulls piled into the company, a single carrier that aims to establish a cellular broadband network in space, sending its stock price up nearly 5% on the day. By contrast, the S&P 500 the index traded only flat during the session.

A significant increase in target price from an expert

The person responsible for this analysis was Mike Crawford, the B. Riley forecaster. Ahead of Thursday’s market open, Crawford raised his AST price target to $36 per share from $26 previously. He maintained his buy recommendation on the stock as well.

The analyst believes AST is still on track to begin commercial operations and is set to exit the third quarter with nearly $400 million in cash. It will also have $145 million available from the conversion of stock warrants.

Although AST remains in a pre-commercial stage right now, Crawford believes funding won’t be a problem, if at all. He wrote that the ultra-specialized telco has numerous other potential sources of capital. These include prepayment options for both government and private sector customers.

With these positive factors supporting AST’s business, the expert raised its full-year 2025 earnings and earnings before interest, taxes, depreciation and amortization (EBITDA) estimates. These increases, in turn, inspired the increase in the price target.

Another highly speculative telecom piece

As you’d expect from a company aiming to put a bunch of mobile phone satellites into space, AST ran into problems. It has several times delayed the launch of the first five satellites that will form its network, and while there is considerable potential in its business, there is no guarantee of bundles of customers who will eagerly sign up for the company’s services.