AST SpaceMobile (ASTS.US) shares rose in pre-market trading after Deutsche Bank upgraded the communications stock from Hold to Buy.

Analyst Bryan Kraft noted that the bank had downgraded the stock in May due to valuation concerns, when a New Glenn launch pad explosion caused significant delays to ASTS's launch schedule.

But now, he believes that recent share price weakness, multiple positive developments and catalysts overlooked by the market, and spectrum value estimated to account for all of ASTS's enterprise value except for $10 per share, make this an opportune time to shift to a more constructive stance.

Kraft said in his latest report: "We believe Friday's 10% decline was a misread, as the 800 MHz spectrum that SpaceX will acquire does not make SpaceX a more competitive D2D mobile network operator partner than ASTS, and ASTS is not targeting the direct-to-consumer market (which SpaceX will primarily serve with the 800 MHz spectrum)."

He added: "We believe T-Mobile is increasingly likely to shift from Starlink to ASTS as its D2D partner (through a joint venture)."

As of press time, ASTS shares were up 3.6% in Monday pre-market trading, after falling 10.5% on Friday due to SpaceX spectrum concerns.