5G Space SPAC Target Jumps On Citron's $50 Target: 'Why Not Go With One With A $1 Trillion TAM'

A SPAC merger announced in December is getting attention from Citron Research as the best space story in the market.

What Happened: Citron Research tweeted that the most compelling space/5G/ESG story in the market is New Providence Acquisition Corp NPA, a SPAC taking AST & Science public.

“All SPACs are speculative so why not go with one with a $1 trillion TAM that has the potential to change the world with real partnerships,” Citron Research said in the tweet.

The tweet comes after Citron announced it would no longer publish short reports instead providing followers with potential multi-baggers.

Citron calls AST the most compelling space story in the market and has a $50 price target.

Related Link: Cathie Wood Could Be Launching A Space Exploration ETF

Why It’s Important: AST announced a merger with New Providence Acquisition in December valuing the company at $1.4 billion. Investors in the deal include Rakuten, Vodafone Group VOD, Samsung, American Tower Corporation AMT and UBS Group.

AST is several years out from producing revenue. The company counts Vodafone, which has 610 million customers, as a partner that will split future revenue from the venture 50-50.

AT&T Inc T, which has 171 million customers, also has an agreement with AST.

AST’s Phase 1 calls for launching 20 satellites targeting 1.6 billion people. Additional satellites will be launched later to target additional markets. By 2027, AST is estimating it will have 373 million subscribers and revenue of $9.66 billion.

NPA Price Action: Shares of New Providence Acquisition are up 17% to $21.73 on Tuesday after earlier hitting a new 52-week highs of $24.94.

Posted In: 5GCitron ResearchSPACspace stocksSPACsM&AShort SellersSmall CapMoversTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.