B. Riley Securities downgraded AST SpaceMobile (ASTS) from Buy to Neutral, citing concerns about the company’s ability to maintain pricing power as competing satellite networks grow. The firm cut its price target by more than 23%, to $65 from $85.
Analysts also cited potential launch delays and rising costs to build out the satellite constellation. The downgrade came despite recent operational updates, including the shipment of several satellites to the launch site.
ASTS shares were reportedly on track for a fifth consecutive day of losses. The stock was also poised for its steepest weekly decline in more than a month, reflecting investor concerns after the revised rating.