Piper Sandler downgraded AST SpaceMobile (ASTS) to Neutral from Overweight on October 12. The bank also cut its price target to $54 from $98, citing growing competitive pressure from SpaceX in the direct-to-cell satellite market.
SpaceX’s recent multi-billion-dollar acquisition of a nationwide mobile spectrum portfolio highlighted its expanding ambitions. Analysts said the move strengthens SpaceX’s position and poses new risks for AST SpaceMobile.
Those risks include potential bottlenecks because AST SpaceMobile relies on SpaceX for satellite launches, as well as increased competition in the developing space-based connectivity sector.