Deutsche Bank upgrades AST SpaceMobile (ASTS.US) to "Buy": Impact of SpaceX spectrum deal may be misread by the market.

AST SpaceMobile (ASTS.US) rose in premarket trading after Deutsche Bank Aktiengesellschaft upgraded the communications stock from "Hold" to "Buy." Analyst Bryan Kraft noted that the bank had downgraded the stock in May due to valuation concerns, when the New Glenn launch pad explosion caused significant delays to ASTS's launch schedule. But he now believes that recent share price weakness, several positive developments and catalysts overlooked by the market, and spectrum value estimated to account for all of ASTS's enterprise value beyond $10 per share, make this an opportune time to shift to a more positive stance. "We believe Friday's 10% decline is a misread, as the 800 MHz spectrum SpaceX will acquire does not make SpaceX a more competitive D2D mobile network operator partner than ASTS, and ASTS is not targeting the direct-to-consumer market (which SpaceX will primarily serve with the 800 MHz spectrum)," Kraft said in his latest report. He added: "We believe T-Mobile is increasingly likely to shift from Starlink to ASTS as its D2D partner (through a joint venture)." As of press time, ASTS shares were up 3.6% in Monday premarket trading, after falling 10.5% on Friday amid SpaceX spectrum concerns.