AST SpaceMobile (ASTS) found itself in investors’ crosshairs on Friday, with shares plunging as much as 10.5% on Oct. 9 after SpaceX (SPCX) struck a deal that raised fresh questions about competition in the satellite communications market. Elon Musk’s company agreed to acquire Grain Management’s nationwide portfolio of 800 MHz spectrum, a set of low-band frequencies that AST SpaceMobile had also been pursuing.
Grain Management is a privately held spectrum owner, and while the acquisition’s financial terms remain undisclosed, the deal must still clear Federal Communications Commission (FCC) approval. Even so, the announcement was enough to rattle ASTS investors and spark a sharp selloff. Deutsche Bank, however, sees the pullback as an opportunity rather than a warning sign. On Monday, the firm upgraded AST SpaceMobile to “Buy” from “Hold,” with analyst Bryan Kraft keeping his $93 price target unchanged.
