Intuitive Machines (LUNR), a rising star in the space industry, has seen a significant surge in value, up roughly 130% in the past 90 days. The space robotics pioneer recently secured a $4.82B contract with NASA to build and deploy satellites into lunar orbit. This momentous deal, the largest in the company’s history, has fueled the lift-off of LUNR stock and has the company knocking on the door of the $1 billion valuation mark.
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Analysts suggest the company is primed for further potential rewards as it continues to drive momentum in the space economy. With three significant contracts under its belt and a track record of unprecedented achievements—including becoming the first American company in 50 years to land a spacecraft on the lunar surface—Intuitive Machines is set to keep growing, making it a compelling option for forward-looking Major Toms ready to take their protein pills and put their helmets on.
New Contracts Fueling Intuitive’s Rise
Intuitive Machines is among the new group of publicly traded companies pushing the envelope in space exploration. It achieved substantial success in 2024 with the landing of its Nova-C class lunar lander, Odysseus, marking the first U.S.-related landing on the lunar surface since 1972.
Recently, the company received a significant boost by securing a Near Space Network (NSN) contract from NASA, primarily intended for communication and navigation services for near space missions, paving the way for NASA’s Artemis campaign to establish a long-term presence on the Moon. This contract, potentially worth $4.82 billion, spans a base period of five years with an option to extend for another five years.
Additionally, NASA has awarded Intuitive Machines a $116.9 million contract to deliver six scientific and technology payloads to the Moon’s South Pole. This announcement is part of NASA’s initiative to send payloads to the Moon and retrieve important data. Intuitive Machines has been awarded its fourth contract for this purpose. The company is now in the final assembly phase of its second lunar mission and is anticipated to deliver the completed lander to the launch facility by late 2024.
What Is LUNR’s Price Target?
The stock is no stranger to speculative spikes in value, at one point climbing over $80 a share. Over the past 52 weeks, the stock has ranged from $2.09 to $13.25. It now trades near the upper middle of that range, while demonstrating ongoing positive price momentum as it trades above the 20-day (6.31) and 50-day (5.33) moving averages. Further, its P/S ratio of 1.9x appears to be a bit of a discount to the Aerospace & Defense industry average of 2.11x.
Analysts covering the company have been bullish on the stock. For example, B. Riley analyst Mike Crawford, a five-star analyst according to Tipranks’ ratings, just reiterated a Buy rating on the stock and raised the price target from $8 to $12, noting the recent NASA NSN contract win. This suggests that Intuitive is rapidly positioning itself as a leading comprehensive space exploration firm, poised to harvest hundreds of millions of dollars in high-margin services revenue.
Intuitive Machines is rated a Strong Buy based on five analysts’ aggregate recommendations and price targets. The average price target for LUNR stock is $10.60, representing a potential upside of 32.67% from current levels.
Final Countdown on LUNR
Intuitive Machines is gaining incredible altitude largely thanks to its robust contract with NASA to construct and deploy lunar orbit satellites. Despite the impressive growth of 212% year-to-date, the company’s further expansion seems promising. As a leading player in the space industry, along with a record-setting lunar landing and three major contracts in the pocket, the company is ushering in the future of space exploration while making it an appealing prospect for progressive investors.
With its aggressive growth trajectory and pioneering achievements, LUNR presents a compelling investment opportunity in the burgeoning space economy.
