10 Best Performing Mid Cap Stocks to Buy According to Analysts

6. AST SpaceMobile Inc. (NASDAQ:ASTS)

Year-to-Date Performance as of February 24: 29.27%

Upside Potential as of February 24: 31.77%

Number of Hedge Fund Holders: 22

AST SpaceMobile Inc. (NASDAQ:ASTS) is developing a satellite network that will enable standard smartphones to connect directly to space-based broadband. It aims to eliminate cellular coverage gaps, extend connectivity to underserved regions, and provide communication beyond the reach of traditional land-based networks.

Cantor Fitzgerald began covering the company on February 6, with an Overweight rating and a $30 price target. This sentiment came due to its strong telecom and tech partnerships, defense potential, and supply chain advantages. They highlighted the company’s long-term opportunities in AI integration and government contracts, particularly with the Space Development Agency.

The company’s primary focus is building its satellite-based cellular broadband network, centered on its BlueBird satellites. It successfully launched five Block 1 satellites, aiming for near 100% US coverage using low-band spectrum. These satellites will integrate with partners like AT&T and Verizon for beta services. The company is developing Block 2 satellites, powered by its AST5000 ASIC chip, which will increase processing bandwidth tenfold. It secured launch agreements with Blue Origin and SpaceX for up to 60 satellites in 2025-2026.

This transition from R&D to commercial operations involves scaling manufacturing and launch efforts. AST SpaceMobile Inc. (NASDAQ:ASTS) ended Q3 2024 with $518.9 million in cash, which includes proceeds from warrant exercises and ATM facilities. The goal is to provide cellular broadband to mobile network operators globally, reaching 2.8 billion subscribers.