On Thursday, May 16, 2024, Deutsche Bank upgraded its rating on NASDAQ:ASTS to Buy, maintaining a hold position. At the time of the announcement, ASTS was tradi

Deutsche Bank Upgrades AST SpaceMobile to Buy Amid Legal Challenges


blog post cover photo

Image credit: Google Images

  • Deutsche Bank upgrades AST SpaceMobile (NASDAQ:ASTS) to Buy, raising the price target to $22.
  • AST SpaceMobile faces a securities fraud class action lawsuit for failing to disclose significant production issues.
  • The stock experienced a significant surge, closing at $4.03, marking an increase of 68.62%.

On Thursday, May 16, 2024, Deutsche Bank upgraded its rating on NASDAQ:ASTS to Buy, maintaining a hold position. At the time of the announcement, ASTS was trading at $4.03. This decision was accompanied by an increase in the price target for AST SpaceMobile, raised to $22 from $19, as detailed in a report published by TheFly. AST SpaceMobile, Inc. is a company that focuses on providing space-based cellular broadband network services, aiming to connect mobile phones directly to satellites. This upgrade by Deutsche Bank indicates a positive outlook on the company's future performance and growth potential.

On the same day, investors in AST SpaceMobile were presented with the opportunity to lead a securities fraud class action lawsuit, as announced by Glancy Prongay & Murray LLP (GPM). The lawsuit targets the period from November 14, 2023, to April 1, 2024, with a lead plaintiff deadline set for June 17, 2024. The legal action arises from allegations that AST SpaceMobile failed to inform investors about significant issues affecting the production of the company's five Block 1 BlueBird satellites, specifically the negative impact caused by two suppliers of key subsystems. This oversight has raised concerns among investors regarding the transparency and reliability of the company's communications.

Despite these legal challenges, ASTS experienced a significant surge in its stock price, closing at $4.03, which marks an impressive increase of 68.62% with a change of $1.64. The stock fluctuated between a low of $3.07 and a high of $4.16 throughout the trading day. Over the past year, ASTS's stock has seen a low of $1.97 and a high of $7.1. The company's market capitalization now stands at approximately $1.03 billion, with a trading volume of 75,187,210 shares. This indicates strong market interest and investor confidence in AST SpaceMobile, despite the ongoing legal issues.

The juxtaposition of the stock upgrade by Deutsche Bank and the announcement of a securities fraud class action lawsuit presents a complex scenario for investors. On one hand, the upgrade and increased price target suggest that financial analysts see strong growth potential in AST SpaceMobile. On the other hand, the lawsuit raises questions about the company's transparency and the potential risks associated with its operations. Investors are thus faced with weighing the potential rewards against the risks in making their investment decisions.

Other Blogs

Nov 25, 2023 6:39 AM - Parth Sanghvi

DCF Valuation vs. Comparable Companies Analysis: Choosing the Right Valuation Method

Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...

blog post title

Dec 23, 2023 2:19 AM - Parth Sanghvi

Understanding the Limitations of DCF Analysis: A Guide to Overcoming Challenges

Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...

blog post title

Dec 25, 2023 2:28 AM - Parth Sanghvi

Integrating Sustainability into Valuations: Navigating ESG Factors within the Discounted Cash Flow (DCF) Model

Introduction: The investment landscape is undergoing a profound shift with a heightened emphasis on sustainability and responsible investing. In this blog post, we explore the intersection of Environmental, Social, and Governance (ESG) considerations within the Discounted Cash Flow (DCF) model, h...

blog post title


Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
2017-2024 © Financial Modeling Prep