Investors looking for the most boundary-pushing tech plays know that space is the place to be. There is all sorts of tech innovation in the sector, ranging from space exploration, to solar panel development, to the crafting of satellites. AST SpaceMobile (NASDAQ:ASTS) is creating a robust network of cellular broadband coverage with a fleet of satellites. The ambitious project is being touted by some major banking institutions. As a result, ASTS stock is flying high.
So what do you need to know now?
To start, AST SpaceMobile is having a turbulent year. The stock has been in the red for the year to date, and interest in space is ebbing and flowing. It seems everything depends on news coming from large space-exploration plays like SpaceX or Virgin Galactic (NYSE:SPCE).
ASTS Stock Gets a MAJOR Boost From Deutsche Bank
Even through this volatility, ASTS presents a product that is completely unique. Satellite cellular broadband that promises to have the most complete coverage of the entire Earth as possible is a hard thing to not be excited by. And the company is quickly innovating; in fact, it has over 1,000 patents to its name. However, unfortunately for investors, the company cannot yet disclose the means by which it hopes to establish this network.
Either way, the company is picking up some big institutional support via Deutsche Bank. The bank is putting a “buy” label on ASTS stock, and a price target of $35. The institution is forecasting a potential 243% gain for the stock over the next few years. It also outlines a worst-case scenarios as well. If the final product doesn’t live up to consumers’ standards, or if a technical issue prevents the satellites’ components from functioning correctly, the result could be devastating for ASTS stock.
The news of Deutsche Bank’s bullishness is hyping investors up quite a bit today. As of this writing, the stock is up nearly 41%, to a price of $14.40. A whopping 24 million shares have traded hands today against the daily average of just 2 million.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.