The company's IM-1 mission lander shortly after launch on February 15, 2024.
Intuitive machines
Intuitive machinesShares of the company rose in early trading Wednesday after NASA awarded the moon-focused company a major contract to build lunar data satellites.
“This contract marks a turning point in Intuitive Machines' leadership in space communications and navigation,” Intuitive Machines CEO Steve Altemus said in a statement.
NASA said the company was the sole bidder to build “lunar relay systems” for the agency’s Near Space Network, a system that communicates with government and commercial missions up to 1 million miles from Earth. The contract will allow Intuitive Machines to build and deploy a constellation of lunar satellites to provide communications and navigation services, especially for NASA’s Artemis program.
The five-year contract, with a maximum total value of $4.82 billion, will be awarded gradually as work progresses. Intuitive Machines' initial NSN award is worth $150 million.
Intuitive Machines shares rose more than 50% in early trading from their previous close of $5.40 a share.
Cantor Fitzgerald analyst Andres Sheppard, whose firm has a buy rating and a $10 price target on the stock, called the NSN deal a boon for the company.
“We view today's win as a significant catalyst and validation of LUNR's prospects and the company's ability to continue to win contracts,” Sheppard wrote in a note to clients.
The stock has more than doubled in value so far this year as Intuitive Machines has steadily racked up contracts with NASA.
Intuitive Machines made history in February by becoming the first U.S. company to soft-land a cargo mission on the lunar surface. Since then, IM became one of three companies awarded contracts under NASA’s $4.6 billion contract for a crewed lunar rover and also added its fourth cargo delivery contract with a $117 million award last month.
Benchmark's Josh Sullivan, who also has a buy rating and a $10 price target, said he believes the latest award shows that NASA views Intuitive Machines' expertise “as elite.”
“LUNR's path to becoming the preeminent player in lunar infrastructure took a major step forward with NSN,” Sullivan wrote.
The company is preparing to launch its next cargo mission to the Moon, IM-2, in the first quarter. Analysts expect the company's first lunar satellite NSN to launch on the IM-3 mission, scheduled for late 2025.
