B. Riley Downgrades AST SpaceMobile to Neutral and Cuts Price Target by 24%

B. Riley analyst Mike Crawford downgraded AST SpaceMobile's stock rating to Neutral from Buy and cut the price target to $65 from $85, a reduction of about 24%. The decision comes after the stock experienced a series of down sessions.

Crawford attributed the move to increasing competition in the direct-to-device satellite market, pointing to Viasat and the Equatis project by UAE-based Space42 as competing alternatives. He said he wants clearer evidence of subscriber adoption rates and pricing before raising his rating again.

Despite the downgrade, Crawford described the company as being in a position of leadership in standard-phone broadband, meaning the decision is about valuation and competition rather than a decline in its technical position. Rating adjustments are among the indicators closely tracked by financial markets because they may prompt investment funds to reassess their positions in the stock.

This sector is widely followed in the Arab region given that Space42's Equatis project is considered a major regional competitor in direct-to-device service, making stock analysts' evaluations of these companies an indicator monitored by investors when assessing the sector. These investors compare the various business models of companies operating in the market, between those owning their own fleet and those relying on partnerships with operators.

What do these terms mean?

Rating: A recommendation issued by a financial analyst regarding a specific stock, such as Buy, Neutral, or Sell. Price Target: The expected price for the stock over an upcoming period based on the analyst's analysis. Direct-to-Device: A service connecting standard phones directly to satellites. Broadband: A high-speed internet connection transmitting large amounts of data, contrasted with slower narrowband.