Shortly after the launch of the company’s IM-1 mission lander on February 15, 2024.
intuitive machine
intuitive machineThe company’s shares rose early Wednesday after NASA awarded the moon-focused company a major contract to build a lunar data satellite.
“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 is the only award winner to build the Lunar Relay System for the agency’s near-space network, which can communicate with government and commercial missions within 1 million miles of Earth. Under the contract, Intuitive Machines will build and deploy a series of lunar satellites to provide communications and navigation services, specifically for NASA’s Artemis program.
The five-year contract, with a total value of up to $4.82 billion, will be awarded incrementally as work progresses. Intuitive Machines’ initial NSN award was worth $150 million.
Intuitive Machines shares soared more than 50% in early trading from the previous closing price of $5.40 per share.
Cantor Fitzgerald analyst Andres Sheppard, who has a buy rating and a $10 price target on the stock, called the NSN contract a boon for the company.
“We view today’s win as an important catalyst and validation for LUNR’s prospects and the company’s ability to continue winning contracts,” Shepherd wrote in a note to clients.
Intuitive Machines’ stock has more than doubled so far this year as it steadily secures NASA contracts.
In February, Intuitive Machines made history when it became the first American company to soft-land a cargo mission on the lunar surface. IM has since become one of three companies awarded contracts in NASA’s $4.6 billion crewed lunar rover contract, and last month added a fourth cargo-transport contract worth $117 million.
Benchmark’s Josh Sullivan, who also has a buy rating and a $10 price target, said he believes the latest awards show NASA considers the Intuitive Machines experience to be “elite.”
“Working with NSN, LUNR takes a huge step forward on its path to becoming a preeminent lunar infrastructure player,” Sullivan wrote.
The company is preparing to launch its next lunar cargo mission, IM-2, in the first quarter. Analysts expect the company’s first NSN lunar satellite to be launched on the IM-3 mission, scheduled for late 2025.
About The Author
