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

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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 (NASDAQ: 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 (NASDAQ: VOD), Samsung, American Tower Corporation (NYSE: 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 (NYSE: 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.

 

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