NextNav (NN) shares have been in focus after the company reported first quarter results and secured an FCC notice of proposed rulemaking, a key regulatory step for its positioning and timing technology business.

The share price is now at $21.49 after a mixed near term move, with a 7 day share price return of 8.59% and a 30 day share price return down 5.87%. The 90 day share price return of 33.56% and 1 year total shareholder return of 54.16% point to building momentum supported by the FCC rulemaking progress, narrowed quarterly loss and expanding 5G partnerships.

If this kind of regulatory and technology story interests you, it might be a good time to scan the market for other positioning and 5G related plays using our 35 power grid technology and infrastructure stocks

With the stock up strongly over the past year and analysts’ price targets sitting above the current US$21.49 level, the key question now is whether recent FCC and 5G progress leaves upside on the table, or if the market is already pricing in future growth.

Most Popular Narrative: 7.4% Overvalued

NextNav's most followed narrative assigns a fair value of $20 per share, compared with the latest close at $21.49, which frames the story as slightly ahead of that fair value estimate.

Progress at the FCC toward an NPRM on 5G based 3D PNT in the lower 900 megahertz band, combined with a congressional push to free more spectrum, sets the stage for commercial rights that can unlock new service revenues and crystallize spectrum value on the balance sheet, supporting higher earnings and asset valuations.

Curious what kind of revenue profile, margin shift and future earnings multiple would need to line up for that fair value to make sense to analysts.

Result: Fair Value of $20 (OVERVALUED)

However, investors still need to factor in the potential for FCC delays and slower than hoped uptake from carriers, which could challenge the current fair value story.

Next Steps

With sentiment mixed across valuation and regulatory outcomes, it helps to see the numbers for yourself and move quickly to shape your own view using our 5 important warning signs

Looking for more investment ideas?

Do not stop with a single stock when there are other opportunities that could suit your goals and risk comfort just as well, or even better.

• Target resilience by scanning for companies that combine robust finances with dependable metrics using our solid balance sheet and fundamentals stocks screener (45 results)
• Hunt for mispriced quality and see which stocks currently look overlooked by the market through our screener containing 21 high quality undiscovered gems
• Build a shortlist of income candidates by focusing on companies that offer higher yields and consistent payouts via our 13 dividend fortresses

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.