Intuitive Machines’ stock soared on Wednesday after NASA awarded the lunar-focused company a significant contract to build and deploy a constellation of satellites dedicated to moon data communication and navigation. The contract positions Intuitive Machines as a leader in space communications and supports NASA’s ambitious Artemis program, which aims to return humans to the moon and establish sustainable exploration.
Under this five-year contract, Intuitive Machines will be responsible for constructing “lunar relay systems” for NASA’s Near Space Network (NSN). This network facilitates communication with both government and commercial missions that extend up to one million miles from Earth. The contract has a potential total value of up to $4.82 billion, with Intuitive Machines receiving incremental awards as specific milestones are met. The initial award for the NSN project is valued at $150 million.
The announcement led to a more than 40% surge in Intuitive Machines’ stock price, boosting it from its previous close of $5.40 per share. This contract is seen as a major catalyst for the company’s growth, demonstrating its capability to secure high-profile space contracts. Analysts like Andres Sheppard from Cantor Fitzgerald view this contract as a pivotal validation of the company’s trajectory and future prospects. Sheppard’s firm has set a $10 price target for the stock, reflecting confidence in the company’s potential to win further contracts and expand its market position.
Intuitive Machines has already made significant strides in the lunar exploration sector. In February, the company made history as the first U.S. private entity to successfully land a cargo mission on the moon. Since then, it has secured several lucrative NASA contracts, including a share in a $4.6 billion crew lunar rover agreement and a fourth cargo delivery contract worth $117 million awarded last month.
Benchmark analyst Josh Sullivan, who also has a buy rating and a $10 price target, emphasized that this latest contract solidifies Intuitive Machines’ status as a premier player in lunar infrastructure development. He noted that the award demonstrates NASA’s confidence in the company’s expertise and capacity to deliver critical space systems.
Intuitive Machines is currently preparing for its next moon mission, IM-2, slated for launch in the first quarter of next year. Analysts predict that the company’s initial NSN lunar satellite will launch on its IM-3 mission, scheduled for late 2025. With the successful acquisition of this contract, Intuitive Machines is poised to play a crucial role in supporting NASA’s lunar exploration and communication infrastructure, potentially becoming a dominant force in the growing field of space communications and navigation.
READ MORE: