Why AST SpaceMobile Stock Is Up Again Today

a day later AST Space Mobile (ASTS 23.54%) The stock has risen significantly as the company solidifies key partnerships, and Wall Street is rallying to the cause. The space communications company’s stock received a price target and was up 19% as of 11 a.m. ET.

Is AST a potential 5x stock?

AST SpaceMobile is trying to build a business connecting smartphones to satellite-based networks. This technology enables voice calls and data connectivity even in blind spots without the need for customers to purchase bulky and expensive satellite phones.

Late Wednesday, the company announced a commercial partnership with: AT&T To help launch the service this summer. AST and AT&T have worked together for several years, but the new agreement makes AST a strong partner as it prepares for launch and drives its stock price higher.

After the market closed, Wall Street came out. Deutsche Bank Analyst Bryan Kraft raised his price target on AST from $19 to $22 and maintained a Buy rating on the stock. Importantly, Kraft noted the stock’s “asymmetric risk-reward” profile, which closed at $4.03 per share on Thursday but thinks it will rise to $22.

Is now the time to buy the AST SpaceMobile?

Kraft’s price target is ambitious, but it’s worth noting that AST stock was trading for more than $12 per share two years ago, when the stock was much more speculative and the company was much further away from a commercial launch.

Still, patience is warranted here. Space stocks are notoriously risky, and despite all the progress AST has made in demonstrating the effectiveness of its technology and preparing for deployment, there is still a long way to go before AST can declare success.

Considering the risks and time it will take to determine whether a business plan is working, investors should proceed with caution.