TELUS Partners with AST SpaceMobile for Satellite Broadband
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 11 hours ago
0mins
Should l Buy ASTS?
Source: seekingalpha
- Commercial Agreement: TELUS has signed a commercial agreement with AST SpaceMobile to combine AST's low-Earth orbit satellite network with TELUS' wireless network, aiming to provide space-based cellular broadband to remote areas in Canada, which is expected to significantly enhance communication capabilities in these regions.
- Infrastructure Investment: As part of the deal, TELUS will invest in ground-based satellite infrastructure and take an equity stake in AST SpaceMobile, which not only strengthens TELUS's market position but also provides ASTS with financial support to accelerate its global satellite deployment.
- Service Launch Timeline: Starting in late 2026, TELUS customers are expected to send texts, make calls, and use data in areas where traditional cellular networks are unavailable, offering unprecedented connectivity opportunities for users in remote locations and enhancing user experience.
- Stock Price Reaction: ASTS shares rose by 2.6% following the announcement of the agreement, reflecting market optimism about the collaboration and indicating investor confidence in future revenue growth, especially as ASTS sets a revenue target of $150 million to $200 million for 2026.
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Analyst Views on ASTS
Wall Street analysts forecast ASTS stock price to fall
8 Analyst Rating
3 Buy
4 Hold
1 Sell
Hold
Current: 92.680
Low
43.00
Averages
91.68
High
137.00
Current: 92.680
Low
43.00
Averages
91.68
High
137.00
About ASTS
AST SpaceMobile, Inc. is engaged in building a global cellular broadband network in space to operate directly with standard, unmodified mobile devices based on its intellectual property (IP) and patent portfolio and designed for both commercial and government applications. The Company is engaged in designing and developing the constellation of BlueBird (BB) satellites and has planned space-based Cellular Broadband network distributed through a constellation of low Earth orbit (LEO) satellites. Its SpaceMobile Service is being designed to provide high-speed cellular broadband services to end-users who are out of terrestrial cellular coverage using existing mobile devices. The Company intends to continue testing capabilities of the BW3 test satellite, including further testing with cellular service providers and the government. The Company has operations in India, Scotland, Spain, and Israel.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Sales Forecast Upgrade: Roth Capital raised AST SpaceMobile's 2027 sales estimate to nearly $1 billion, anticipating that increasing mobile network operator activity and government opportunities will drive revenue growth, highlighting the company's strengthening strategic position in the industry.
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- Sales Forecast Upgrade: Roth Capital raised AST SpaceMobile's 2027 sales estimate to nearly $1 billion, anticipating that increasing mobile network operator activity and government opportunities will drive revenue growth, highlighting the company's strengthening strategic position in the industry.
- Satellite Launch Plans: AST plans to deploy approximately 45 to 60 Block 2 BB satellites by the end of 2026, launching one every month, aiming to provide intermittent service in selected markets, which will lay the groundwork for the company's commercial service activation.
- Positive Market Reaction: Following the Q4 revenue report, AST SpaceMobile's shares rose over 10%, and the stock has soared 234% over the past 12 months, reflecting strong investor confidence in the company's future prospects.
See More
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See More
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- U.S. Stock Market Performance: Stock indexes in the U.S. closed higher on Wednesday, indicating a positive market trend.
- Index Gains: The S&P 500 gained 1.29%, the Dow Jones increased by 0.78%, and the Nasdaq rose by 0.49%.
See More
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- Partnership Agreement: AST SpaceMobile has partnered with Canadian telecom company Telus, which will invest in ground-based satellite infrastructure and acquire equity in AST SpaceMobile, enhancing ASTS's competitive position in the market.
- Commercial Service Outlook: Once ASTS launches its commercial services, Telus customers will be able to send texts, make calls, and use data services in the most remote areas of Canada, significantly improving user experience and expanding market coverage.
- Price Target Increases: UBS analyst Christopher Schoell nearly doubled the price target for AST SpaceMobile from $43 to $85, reflecting optimistic market expectations for the company's future revenue growth, while Deutsche Bank raised its target to $139, implying a 34% upside.
- Positive Market Sentiment: Retail sentiment on Stocktwits regarding AST SpaceMobile trended in the 'extremely bullish' territory with high message volumes, indicating strong investor confidence in the company's future partnerships and market potential.
See More
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- Market Rally: Wall Street experienced a relief rally on Wednesday, driven by optimism surrounding potential US-Iran diplomatic talks, with the Nasdaq 100 gaining 1.5% to 25,100, indicating investor confidence in future economic stability.
- Oil Price Decline: Following two consecutive days of gains, Brent crude fell 0.5% to $81.00 per barrel and WTI crude slipped 0.8% to $74.07, reflecting the impact of diplomatic optimism on the energy market.
- Volatility Index Drop: The CBOE Volatility Index plunged 11.6% to 20.84, indicating a rise in market risk appetite and a decrease in demand for safe-haven assets, further fueling the stock market's upward momentum.
- Stable Treasury Yields: The 10-year U.S. Treasury yield held steady at 4.07%, suggesting that as risk appetite increases, demand for safe assets is capped, reflecting a positive outlook on economic prospects.
See More
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- Partnership Announcement: AST SpaceMobile has signed a partnership with Canadian telecom giant Telus, which will invest in ground-based satellite infrastructure while AST provides BlueBird satellites, aiming to deliver satellite broadband to remote areas in Canada, thereby enhancing AST's competitive position in the market.
- Equity Stake: Telus will become an equity shareholder in AST SpaceMobile, reinforcing the long-term alignment between the two companies; however, it remains unconfirmed whether Telus will directly purchase AST shares, yet this equity relationship ensures Telus will entrust its direct-to-cell business to AST going forward.
- Market Reaction: Following the partnership announcement, AST's stock surged by 10%, indicating a positive investor response, although the direct-to-cell service is not expected to launch until late 2026, which may impact short-term profitability expectations.
- Profitability Outlook: Despite the optimistic partnership prospects, AST's service readiness in the U.S. or Canada remains uncertain, potentially disappointing investors who anticipated profitability next year, leading analysts to maintain a cautious stance on AST's stock.
See More
