New Providence Acquisition (NASDAQ:NPA) stock is rocketing higher on Tuesday after Citron Research called it a space special purpose acquisition company (SPAC) to own.
In that Tweet, Citron Research argues a $50 per share price target for NPA stock. That has the company expecting a massive 169% growth considering the stock’s closing price of $18.61 on Monday.
Here’s the full Tweet from Citron Research concerning NPA stock.
$NPA tgt $50. Most compelling Space/5G/ESG story in the market. All SPACS are speculative so why not go with one with a $1 trillion TAM that has the potential to change the world with real partnerships. The most important Space story in the market. Report to follow pic.twitter.com/WHQHSCEGp0
— Citron Research (@CitronResearch) February 9, 2021
So what’s all this space talk that Citron Research is going on about in its Tweet? The blank-check company is preparing to take AST SpaceMobile public via a SPAC merger. AST SpaceMobile is a company looking to set up a mobile wireless network in space.
New Providence Acquisition and AST SpaceMobile haven’t completed their deal just yet but it should be too far off. The two companies are expecting the merger to close during the first quarter of this year.
It’s also worth noting that AST SpaceMobile already has some big name investors backing its space efforts. That includes the likes of Vodafone (NASDAQ:VOD), Rakuten (OTCMKTS:RKUNY), American Tower (NYSE:AMT), and Cisneros.
Citron Research’s Tweet sparked heavy trading of NPA stock today. As of this writing, more than 8 million shares of the stock have changed hands. For comparison, the stock’s daily average trading volume is 1.43 million shares.
NPA stock was up 17.7% as of Tuesday afternoon and is up 69.6% since the start of the year.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.