MW Intuitive Machines' stock soars, boosted by NASA contract worth up to $4.82 billion
By James Rogers
Shares of space-exploration company Intuitive Machines are up more than 45% in premarket trades
Shares of Intuitive Machines Inc. are skyrocketing Wednesday, lifted by the award of a NASA contract that could be worth up to $4.82 billion.
Late Tuesday Intuitive Machines (LUNR) announced that NASA had awarded the the company the Near Space Network contract for communication and navigation services for missions in the near space region, which extends from Earth's surface to beyond the Moon.
The contract has a base period of five years with an additional five-year option period, with a maximum potential value of $4.82 billion, according to a statement released by Intuitive Machines.
The space-exploration company's shares are up 45.4% in premarket trades Wednesday. The stock is up 111.4% in 2024, outpacing the S&P 500 index's SPX gain of 18.1%.
Related: Intuitive Machines' stock skyrockets, lifted by NASA lunar contract
"This contract marks an inflection point in Intuitive Machines' leadership in space communications and navigation," said Intuitive Machines CEO Steve Altemus, in the company's statement. "We're pleased to partner with NASA, as one team, to support the Artemis campaign and endeavors to expand the lunar economy."
The Artemis program aims to eventually return U.S. astronauts to the moon.
"We see the win today as a significant catalyst and validation towards LUNR's outlook and the company's ability to continue to win contracts," wrote Cantor analyst Andres Sheppard, in a note Tuesday. "More importantly, LUNR was the only awardee of this contract."
Related: Intuitive Machines targets early 2025 for next moon launch
Cantor remains bullish on Intuitive Machines and maintained its overweight rating. "We continue to believe the company is well-positioned to capitalize on the growing space economy through its Lunar Access, Lunar Communication, Orbital Services, and Space Infrastructure revenue segments," added Sheppard, in the note.
Intuitive Machines made history earlier this year when its Odysseus lander became the first commercial lander to successfully land on the moon's surface. The IM-1 mission also marked the first time that an American spacecraft had reached the lunar surface since Apollo 17's Challenger lunar module in December 1972.
Last month Intuitive Machines provided an update on its mission schedule when it reported second-quarter results. In a presentation, Intuitive Machines said that it expects to ship its next moon lander to its launch site in the fourth quarter, with the launch window extending through the first quarter of 2025.
Related: Odysseus lander makes history by reaching moon, as Intuitive Machines' stock rockets 35%
In late August Intuitive Machines was awarded a $116.9 million NASA contract to deliver six science and technology payloads to the moon's south pole. One of the payloads is a European Space Agency-led drill suite, the company said in a statement.
-James Rogers
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September 18, 2024 07:00 ET (11:00 GMT)
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