01:16 PM EDT, 08/15/2024 (MT Newswires) -- AST SpaceMobile's ( ASTS ) profile is improving with the planned launch of its first five commercial satellites in the first half of September, UBS said in a note.

AST SpaceMobile ( ASTS ) was granted an initial license by the Federal Communications Commission earlier this month for space-based cellular broadband operations in the US following the completion of production and environmental testing of the first five BlueBird satellites.

"We still see [AST SpaceMobile ( ASTS )] as a high-risk, high-reward investment," UBS said in a note Wednesday. "That said, initial US regulatory approval, the imminent launch of its first commercial satellites, and partner/funding progress add to our conviction."

The firm called the FCC's approval of the initial space-based operations for the satellites "a key step."

UBS said it continues to view the upcoming launch of the satellites "as a key catalyst providing proof of concept for both AST's tech and commercial path."

"With greater conviction in the commercialization and scalability of AST's plans, we are increasing estimates and now look for $1.8 billion of revenue by 2028 (from $1.1 billion prior)," the firm said.

UBS lifted the company's price target to $30 from $13 and maintained its buy rating.

Shares of AST soared nearly 46% in recent trading.

Price: 30.37, Change: +9.56, Percent Change: +45.94