Why ASTS Shares Are Heading To Space Today

Shares of 5G from space company AST SpaceMobile Inc (NASDAQ: ASTS) are rocketing higher Wednesday.

What Happened: Deutsche Bank initiated shares of ASTS with a Buy rating and a price target of $35 citing a favorable risk/reward profile.

Four model scenarios from the analyst reached price targets ranging from $0 to $86 for the company.

AST SpaceMobile went public in a SPAC merger valuing the company at $1.4 billion. The company has plans to reach 620 million customers by 2030 and $1 billion in EBITDA by 2024.

The analyst sees huge competitive advantages for the company and highlights key wholesale partners.

AST has partnerships with Vodafone Group (NASDAQ: VOD), AT&T (NYSE: T) and Telefonica SA (NYSE: TEF). A 50/50 revenue share model with the partners could provide high margins for ASTS according to the analyst.

Price Action: ASTS shares are up 35% to $13.74.