$ASTS ( ▲ 9.01% ) climbed after Bank of America lifted its price target on the satellite-to-smartphone company to $100 from $85, citing growing momentum in the low-Earth orbit space communications market. Shares rose as investors reacted to the more optimistic outlook, even as the bank kept a neutral rating on the stock.
Why BofA is more optimistic
In a note published Thursday, BofA analysts said 2026 could be a pivotal year for the LEO satellite industry, as companies race to offer full cellular service from space. They highlighted $ASTS alongside Starlink as key players to watch, while noting that the sector helped power strong gains last year in names like $RKLB ( ▲ 2.48% ) and $PL.
The analysts said attention will likely intensify around carrier partnerships, pricing clarity, and regulatory decisions tied to spectrum transactions involving players such as Ligado and EchoStar $SATS ( ▲ 2.23% ) . As AST approaches full constellation operability, BofA expects debates around service rollout and competitive positioning to heat up.
Why the rating is still neutral
Despite the higher price target, BofA said it wants to see more execution before turning outright bullish. Specifically, the firm said it is waiting for progress on three fronts: full production and launch of AST’s BlueBird satellite constellation, successful operation of that constellation, and proof that subscribers can be converted into consistent, revenue-paying users.
The market is already convinced
While analysts remain cautious, investors have been far less patient. AST SpaceMobile shares are up roughly 300% over the past year, reflecting strong retail enthusiasm for the idea of mobile services delivered directly from space, even as the company continues to operate at a loss.