Why did ASTS stock react to Scotiabank’s downgrade?

Scotiabank cut its rating to Underperform with a $45.60 price target and called the rally irrational. The bank cited slow adoption, modest pricing potential, and heavy capex pushing free cash flow to 2028–2029. Investors repriced expectations, especially with direct-to-cell competition and a valuation far above the new target.

Is ASTS stock overvalued on current metrics?

On today’s numbers, valuation is rich. Price-to-sales is 6,042.53x and price-to-book is 20.69x, while EPS and margins are negative and free cash flow yield is -2.31%. Bulls argue scale can fix unit economics, but bears see a long runway before sustainable cash generation.

What technical levels matter for ASTS stock now?

We are watching support around $80–81 and near the $77 band area. Resistance sits near $94–95 and the year high at $102.79. RSI at 66.69 and CCI at 163.68 flag overbought risk, while ATR of 8.00 signals elevated volatility. Use stops and avoid chasing breakouts.

What should Canadian investors focus on next?

Watch launch cadence, service performance, and carrier agreements, especially any that reference Canadian coverage. Track capex guidance, funding plans, and the path to free cash flow. Mind USD exposure and liquidity. The next scheduled earnings date is March 2, 2026, which could refresh guidance and timelines.

Global Market Insights

ASTS Stock Today, January 10: Scotiabank Downgrade Flags Valuation Risk

ByDanny Kontos January 10, 2026January 10, 2026

ASTS stock is in focus for Canadian investors after Scotiabank cut AST SpaceMobile to Underperform with a $45.60 target. The bank called the rally irrational, citing slow adoption, modest pricing, and heavy capex that may push free cash flow to 2028–2029. Shares recently traded near $90.92 USD, well above both the new target and a consensus near $49. We unpack the call, key valuation metrics, technical signals, and direct to cell competition from Starlink. For Canadians, currency exposure and policy timelines matter given remote coverage needs. All figures are USD unless noted.