Intuitive Machines (LUNR) jumped as high as 8% during Wednesday’s pre-market session. This came after the space tech infrastructure company announced its selection for the Andromeda IDIQ contract vehicle and followed reports that Alphabet’s (GOOGL) Google is engaging in discussions for potential rocket-launch deals with SpaceX and industry peers.
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Andromeda is the U.S. government’s multi-billion-dollar space surveillance infrastructure modernization project. It is spearheaded by the U.S. Space Force.
Intuitive Machines to Chase More Contracts
The selection means that the Texas-based space technology infrastructure company can now compete for contracts to design and field Space Domain Awareness (SDA) satellites and related systems that can detect, track, and characterize objects in geosynchronous orbit, where satellites move at the same speed as the Earth rotates.
“Our focus is to provide innovative and dependable SDA mission solutions for the U.S. Space Force to maintain space superiority through 2030 and beyond,” Intuitive Machines noted in an X post published on Tuesday.
‘First Major Selection’ after Lanteris Merger
The deal comes four months after Intuitive Machines completed its $800 million acquisition of spacecraft manufacturer Lanteris Space Systems. In the post, Intuitive Machines noted that the Andromeda inclusion marks “our first major selection as a combined company.”
“Together, we bring unique mission value for Andromeda through our combined heritage of high-performance systems delivered via commercial-based processes,” the space services company added.
Since the start of the year, Intuitive Machines’ shares have nearly doubled, topping $34 per share early Wednesday. This comes as the U.S. National Aeronautics and Space Administration’s recent Artemis II mission triggered renewed investor focus on space companies, including those focused on lunar exploration.
Is Intuitive Machines a Good Stock to Buy?
On Wall Street, analysts have a Strong Buy consensus rating on Intuitive Machines’ shares. This is based on eight Buys and one Hold issued over the past three months.
However, the average LUNR price target of $25.75 suggests roughly 20% downside risk from current trading levels.
