MW Intuitive Machines' stock soars as company preps second moon mission for early 2025
By James Rogers
Houston-based Intuitive Machines made history in February when its IM-1 mission successfully landed the first commercial lander on the surface of the moon
Intuitive Machines Inc. shares surged 8.6% Friday as the space-exploration company plans to send its second mission to the surface of the moon early next year.
The company reported better-than-expected third-quarter revenue and narrowed its full-year outlook Thursday. After initially skyrocketing, Intuitive Machines' stock (LUNR) ended Thursday's session down 13%.
The Houston-based company made history earlier this year when its Odysseus lander became the first commercial lander to successfully land on the moon's surface. Speaking during a conference call to discuss Intuitive Machines' third-quarter results, Intuitive Machines Chief Executive Steve Altemus said that the company's IM-2 mission is on track to fly in the first quarter of 2025, with a February launch window. The CEO described IM-2 as a "very complicated" prospecting mission that will deploy, a drill, hopper and rover on the lunar surface.
Related: Intuitive Machines' stock skyrockets as third-quarter revenue more than triples and NASA fuels record backlog
In a note released Friday, Cantor raised its price target for Intuitive Machines to $15 from $10, citing the company's higher revenues, additional contracted awards, and higher peer multiples. Intuitive Machines was recently awarded the NASA Near Space Network contract for communication and navigation services for missions in the near-space region, which extends from the Earth's surface to beyond the moon. The contract has a maximum potential value of $4.82 billion.
The company was also awarded a $116.9 million contract through NASA's Commercial Lunar Payload Services $(CLPS)$ initiative. The contract is Intuitive Machines' fourth award under the CLPS program, which aims to deliver science and technology to the moon's surface.
"We remain bullish on LUNR, and we continue to believe it is well-positioned to capitalize on the growing space economy through its Lunar Access, Lunar Communication, Orbital Services, and Space Infrastructure revenue segments," Cantor analyst Andres Sheppard wrote in a note. Sheppard also noted that Intuitive Machines reaffirmed that it is targeting an IM-3 mission in early 2026. The analyst firm expects that the company's IM-4 million will be in the first quarter of 2027. Cantor has an overweight rating for Intuitive Machines.
Related: Space stocks climb again as 'momentum sector' drives gains
Benchmark raised its Intuitive Machines price target to $16 from $10 in a note released Friday. "LUNR finds itself having built a successful commercial model, proven lunar mission heritage, and several high profile wins with more to come," wrote Benchmark analyst Josh Sullivan, in a note. "LUNR's execution is now accelerating just as a favorable backdrop with a new Presidential Administration who appears highly supportive of space and geopolitics but also cost conscious and supportive of commercial models." Benchmark has a buy rating for Intuitive Machines.
All of the six analysts surveyed by FactSet have a buy rating for Intuitive Machines.
Intuitive Machines shares are up 335.1% in 2024, outpacing the S&P 500 index's SPX gain of 23.2%.
-James Rogers
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November 15, 2024 12:31 ET (17:31 GMT)
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