Venture Investing: AST & Science ($ASTS) Part 4 - Anticipating Analyst Coverage
Updated: Nov 2, 2022
After a de-SPAC, there is a period where investment banks wait before initiating coverage. At the very least, investors can expect the banks involved in the deal to initiate - in this case, BTIG (advisor to NPA) and Barclays (advisor to AST Spacemobile). Investment banks are currently waiting 30 days post de-SPAC, as is usual for a 'normal' IPO, before they initiate. This means coverage coming ~ May 7.
ASTS is likely to also receive coverage from banks such as Morgan Stanley and JP Morgan.
What will the analysts say? We don't know - but this Scotia Bank report shows how the story will be communicated to investors. Importantly, more information allows investors to better understand the risk. In the absence of formal research, many investors rationalize a high-potential stock like ASTS as "binary." TheKOOKReport believes this is false. As investors "take zero off the table," the shares are expected to re-rate considerably higher as awareness builds. Please see the attached report to understand how Wall Street is likely to consider the shares.