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Piper Sandler analyst Alexander Potter has initiated coverage of AST SpaceMobile (ASTS) shares with an "Overweight" rating and a $100 price target, signaling potential upside of nearly 80% from their previous close. 

In contrast, the investment firm assumed coverage of space industry peers SpaceX (SPCX) and Rocket Lab (RKLB) with "Neutral" ratings, signaling it prefers ASTS over SPCX and RKLB as a long-term holding. 

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Piper Sandler's bullish call brings much-needed reprieve to AST SpaceMobile stock that has otherwise been under immense pressure, currently down more than 50% versus its year-to-date high. 

Potter acknowledged SpaceX's massive role in shaping the modern space sector — but said ASTS shares offer a much cleaner risk-reward ratio over a one-year horizon. 

Its business model focused on partnering directly with global telecom carriers instead of competing against them creates a lower-risk path to commercialization, he told clients. 

According to the Piper Sandler analyst, AST SpaceMobile's subscriber base could grow to roughly 45 million within the next five years, reinforcing just how much room the company has for future growth. 

That said, Barchart currently has a "72% SELL" opinion on ASTS, indicating technical momentum continues to signal further downside ahead.  

In his research note, analyst Alexander Potter framed Rocket Lab as a solid alternative to SPCX but warned the market has already priced in its potential. 

In comparison, AST SpaceMobile shares are trading at a much more attractive valuation, he added.

Piper Sandler expects the company's revenue to soar from $166 million this year to more than $5 billion by 2031, with EBITDA surpassing $4 billion over the same period. 

In short, while technical indicators flash caution, Potter's long-term growth estimates suggest AST SpaceMobile could outshine its space-sector rivals moving forward. 

While not as bullish as Piper Sandler, ASTS stock remains in favor with other Wall Street firms as well. 

According to Barchart, while the consensus rating on AST SpaceMobile sits at "Hold" only, the mean price target of about $87 signals potential upside of another 45% 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. This article was originally published on Barchart.com