B. Riley upgraded AST SpaceMobile (ASTS) to Buy from Neutral on Friday, July 18, 2026, maintaining a price target of $85 after the satellite communications company’s shares declined 44% over the prior six months.
The upgrade came after AST SpaceMobile priced $1 billion in 1.625% convertible senior notes due 2034, combined with capped call transactions that increase the effective conversion price from $79.57 to $149.20. B. Riley analyst Mike Crawford said the company now has sufficient capital to launch its global SpaceMobile D2D constellation.
AST SpaceMobile’s stock had slumped since January 13, 2026, when B. Riley downgraded the company to Neutral. The shares hit an all-time high of $133.09 on May 28, 2026, but retreated sharply amid broader market volatility and concerns about execution timelines. By mid-July, the stock had fallen to around $57.80.
The $1 billion convertible offering initially triggered a sharp sell-off, with shares experiencing their worst one-day drop in more than two years on July 17. However, the B. Riley upgrade signaled renewed confidence in the company’s financial position. Shares rose 5.5% on Friday following the upgrade announcement.
Crawford’s rationale centered on the improved risk-reward profile after the decline. The capped call structure, which sets a conversion price of $149.20, implies a $60 billion valuation for the company—well above current market levels. This structure protects against excessive dilution while giving the company the financial runway to deploy its BlueBird satellite network and work toward commercial service launches with wireless carriers.
AST SpaceMobile has been executing on its satellite deployment roadmap, with the BlueBird 10 satellite array recently deployed. The company’s strategy is to enable direct-to-device connectivity on standard mobile phones, allowing wireless carriers to expand coverage without additional cell tower infrastructure. The convertible funding provides the capital needed to continue this buildout through service launch phases.
Sources
- TipRanks — B. Riley upgrade details, analyst commentary, and convertible note terms
- Seeking Alpha — upgrade announcement and valuation context
- Investing.com — analyst rating change and pricing details
- StreetInsider — B. Riley analyst Mike Crawford upgrade confirmation
- Blockonomi — stock price and trading data following upgrade
