Intuitive Machines Secures $4.82 Billion NASA Contract, Stock Soars Over 50%

Intuitive Machines shares soared more than 50% early Wednesday after the company announced that it had secured a $4.82 billion navigation and communication services contract from NASA. This contract will support “missions in the near space region,” which includes areas from Earth’s surface to beyond the Moon.

The contract, which begins on October 1 and runs through September 30, 2029, has a five-year base period with an option for an additional five years. Intuitive Machines will deploy lunar relay satellites and provide communication and navigation services to support NASA’s Artemis campaign aimed at establishing a long-term presence on the Moon.

“This contract marks an inflection point in Intuitive Machines’ leadership in space communications and navigation,” said Chief Executive Steve Altemus in a press release. “We’re pleased to partner with NASA to expand the lunar economy.”

Impact on Stock

Following the announcement, Intuitive Machines’ stock (NASDAQ: LUNR) surged by 53% during premarket trading on Wednesday. The stock had previously closed at $5.40 on Tuesday, after falling by 5.6% earlier that day. The stock hit a high of $13.25 in February 2023 following a reverse merger with Inflection Point Acquisition Corp., a SPAC deal.

Industry Analysts’ Reactions

Benchmark analysts reacted positively to the NASA contract, stating that it positioned Intuitive Machines as “the backbone of lunar data transmission.” The analysts also noted that the contract offers long-term financial stability, something many of Intuitive Machines’ competitors lack.

Benchmark has maintained a buy rating on LUNR with a price target of $10, representing an 85% upside from Tuesday’s close.

Future Outlook

With the $4.82 billion NASA contract and its leadership in lunar exploration, Intuitive Machines is poised for significant growth. The company’s role in supporting the Artemis mission will be pivotal in expanding the lunar economy and establishing a sustainable presence on the Moon.

As the space industry continues to grow, Intuitive Machines’ stock remains one to watch, with hedge funds and analysts expressing confidence in its long-term potential.