Shortly after the company’s IM-1 mission lander launches on February 15, 2024.
Intuitive machines
Intuitive machinesShares rose in early trading on Wednesday after NASA awarded a major contract to build lunar data satellites to a moon-focused company.
“This agreement marks an inflection point in Intuitive Machines’ leadership in space communications and navigation,” Intuitive Machines CEO Steve Altemus said in a statement.
NASA said the agency’s sole award was for developing “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 see the Intuitive Engines build and deploy a fleet of lunar satellites to provide communications and navigation services, specifically for NASA’s Artemis program.
The five-year contract, with a maximum value of $4.82 billion, will increase awards as work progresses. Intuitive Machines’ initial NSN award is valued at $150 million.
Shares of Intuitive Machines jumped nearly 60% in early trading from its previous close of $5.40 a share.
Cantor Fitzgerald analyst Andres Shepherd, who has an equal rating of buy and a $10 price target on the stock, called the NSN deal a boon for the company.
“We see today’s win as a significant boost and validation of LUNR’s outlook and the company’s ability to continue to win contracts,” Shepherd wrote in a note to clients.
The stock has more than doubled year over year as Intuitive Machines has steadily racked up NASA contracts.
Intuition Machines made history in February by becoming the first American company to soft-land a cargo mission on the lunar surface. Since then, IM has been among three companies awarded contracts under NASA’s $4.6 billion Crew Lunar Rover contract, adding its fourth cargo delivery contract last month with a $117 million award.
Benchmark’s Josh Sullivan, who also has a buy rating and a $10 price target, said he believes the latest award sees NASA’s Intuition Machines experience as “highly deserved.”
“LUNR’s path to becoming a premier lunar infrastructure player took a big 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 NSN lunar satellite to launch in late 2025 on the planned IM-3 mission.
