Intuitive Machines’ stock surged in early trading after NASA awarded them a major contract to build moon data satellites. The company will build “lunar relay systems” for NASA’s Near Space Network, providing communication and navigation services for missions up to 1 million miles from Earth. Intuitive Machines’ CEO, Steve Altemus, stated that this contract signifies a turning point in their leadership in space communications. The five-year contract is valued at a maximum of $4.82 billion, with an initial award of $150 million.
Cantor Fitzgerald analyst Andres Sheppard praised the NSN contract as a boon for the company, noting that it validates Intuitive Machines’ ability to win contracts. The stock has doubled year-to-date as the company continues to secure NASA contracts. Intuitive Machines recently made history by soft-landing a cargo mission on the moon’s surface, becoming the first U.S. company to do so. They are also preparing for their next cargo mission, IM-2, scheduled for the first quarter, with analysts anticipating the launch of their first NSN lunar satellite on the IM-3 mission in late 2025.
Benchmark analyst Josh Sullivan, who also has a buy rating and $10 price target on the stock, believes that NASA’s latest award demonstrates their recognition of Intuitive Machines’ elite experience in the field. Sullivan stated that this award is a significant step for LUNR in establishing themselves as a key player in lunar infrastructure.