Intuitive Machines: Stock Price Takes Off After New NASA Contract

The shares of Intuitive Machines are soaring after the aerospace company announced that it had received another significant contract from NASA. The contract, which could reach a volume of up to $4.8 billion, brings the company closer to its ambitious goals. As the first private company to successfully land a spacecraft intact on the moon, Intuitive Machines on Wednesday saw its largest intraday price increase in 18 months. Since the beginning of the year, the stock price has more than tripled after the Houston-based company won a series of NASA contracts. The latest contract includes communication and navigation services for missions in the vicinity of near space, from the Earth's surface to beyond the moon. In August, the company had already received a NASA contract to deliver scientific and technological payloads and was selected in April as one of three companies to develop surface vehicles for the moon. This latest success represents a significant catalyst and a confirmation of the future prospects of Intuitive Machines, according to Anders Sheppard, an analyst at Cantor Fitzgerald. It is particularly noteworthy that Intuitive Machines was the only provider to receive the award, despite multiple companies competing for it. The initial orders of the contract amount to approximately $150 million and offer a base period of five years with an additional option for five more years, potentially worth up to $4.8 billion in total. As part of the contract, Intuitive Machines will introduce data and transmission services for the moon, a key component in commercializing lunar activities. Benchmark analyst Josh Sullivan emphasizes that the agreement provides significant long-term financial stability that many other aerospace companies lack. This contract is a major step for Intuitive Machines on the path to becoming a leading provider of lunar infrastructure. Although the company's shares have experienced significant fluctuations this year and remain more than 20% below their peak in February despite the recent increase, Wall Street remains optimistic. All five analysts tracked by Bloomberg rate the stock as a buy. The 12-month price target averages at $9.80, indicating further growth potential of about 18%. CEO Steve Altemus emphasized that this contract marks a turning point in Intuitive Machines' leadership in space communication and navigation.