B.Riley Cuts AST SpaceMobile Target to $65 on Rival Threats

B.Riley downgraded AST SpaceMobile (NASDAQ: ASTS) to Neutral from Buy and slashed its price target from $85.00 to $65.00, according to Investing.com, citing emerging pricing pressures from low-cost, multi-tenant space competitors.

"We continue to believe ASTS is among the leaders in the race to enable true broadband connectivity to unmodified phones. However, with MNO subscriber uptake and service plan pricing data still to come, we believe shares fairly reflect what we know today," said Mike Crawford, analyst at B.Riley, in a Benzinga report.

Emerging Multi-Tenant Competitors

The downgrade stems from growing anxieties regarding consumer pricing for space-based cellular broadband. B.Riley pointed specifically to market pressures from Viasat and Space42’s Equatys joint venture, as detailed by Investing.com, which plans to deploy a constellation of up to 2,800 satellites as soon as 2028.

Analysts noted that Equatys is actively seeking additional partners. Particular concern was raised over a potential tie-up with Rocket Lab, which holds 8.725 MHz of L-Band spectrum acquired from Iridium, a combination that analysts warn could place AST SpaceMobile at a structural competitive disadvantage.

Satellite Deployment and Manufacturing Updates

Alongside the analyst action, AST SpaceMobile continues active preparations for orbital expansion. The company recently shipped BlueBirds 14, 15, and 16 from its manufacturing facility in Midland, Texas to Cape Canaveral.

These logistical milestones follow the full deployment of BlueBird 11, which occurred roughly 35 days after the company announced the successful deployment of BlueBirds 12 and 13.

What Is at Stake for Direct-to-Cellular Networks

The reassessment highlights the shifting competitive calculus in the direct-to-device satellite communications sector. While pioneering technical compatibility with standard mobile handsets has driven strong share performance, financial institutions are increasingly scrutinizing long-term unit economics, mobile network operator (MNO) revenue-sharing structures, and the deflationary impact of forthcoming multi-tenant satellite constellations.