Analysts favor AST SpaceMobile for its valuation and earnings growth potential amid competition risks from SpaceX and Rocket Lab.
Piper Sandler initiated coverage on three space-sector companies, assigning an Overweight rating to AST SpaceMobile (ASTS) while rating Rocket Lab (RKLB) and SpaceX (SPCX) as Neutral. The firm highlighted ASTS’s lower valuation and clearer path to earnings growth as key drivers for its preference.
Rocket Lab was noted as a strong alternative to SpaceX, with growth tied to its Neutron rocket, but its premium valuation and correlation to SpaceX led to a Neutral outlook. SpaceX’s Starlink direct-to-cell service poses a competitive threat to ASTS, alongside regulatory and adoption challenges.
The ratings reflect differing risk-reward profiles, with ASTS positioned as the most attractive opportunity in the sector despite execution risks.