Piper Sandler Just Downgraded ASTS Stock. SpaceX May Be to Blame.

AST SpaceMobile (ASTS) shares have been in a massive downtrend since late May, but Alexander Potter, a senior Piper Sandler analyst, recommends against betting on a swift recovery. In a research note this morning, Potter downgraded ASTS to “Neutral” and trimmed his price target on the satellite company to $54, indicating under 5% upside from its previous close. 

Following today’s decline, AST SpaceMobile stock is trading at nearly half its price at the start of 2026. 

Why Piper Sandler Downgraded AST SpaceMobile Stock

Potter’s caution reflects the possibility that SpaceX (SPCX) could pressure ASTS’s business on two fronts. 

SpaceX’s recent $8 billion spectrum purchase significantly strengthens its ambitions in direct-to-cell connectivity, potentially intensifying competition over wireless pricing. Plus, the analyst warned that billionaire Elon Musk’s space giant may also limit launch availability for companies aligned with competing mobile operators. 

According to Piper Sandler, SpaceX could introduce its own devices or cheaper services as well, which led it to lower its assumed monthly price for AST SpaceMobile’s service by 20% to $12.

Note that Barchart also has a “100% SELL” opinion on ASTS stock, indicating technical momentum is not in its favor either. 

ASTS Shares May Regain Momentum Beyond 2027

Deployment uncertainty is the other major reason behind Piper Sandler’s retreat. 

Potter now forecasts 18 satellites in orbit at the end of this year, versus 45 previously, and 60 by the end of 2027, also down significantly from 68. He believes the slower buildout could push the firm’s U.S. commercial rollout into the second half of 2027.

That said, the analyst remains constructive beyond 2027: SpaceX’s expansion will likely encourage established carriers to strengthen ties with ASTS as an alternative connectivity partner.

This explains why he has a “Neutral” rating on AST SpaceMobile shares instead of a sell. 

Wall Street Remains Bullish on AST SpaceMobile

Investors should note, however, that other Wall Street firms remain bullish as ever on ASTS shares for the next 12 months. 

The consensus rating on AST SpaceMobile sits at “Moderate Buy” currently, with the mean price target of about $83 indicating potential upside of nearly 80% from here. 

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.