Intuitive Machines shares soared more than 50% early Wednesday after the company announced Tuesday it had been awarded a $4.82 billion navigation and communication services contract from NASA for "missions in the near space region, which extends from Earth's surface to beyond the Moon."
The company said Tuesday that under the contract, which has a base period of five years and an option for an additional five years, Intuitive Machines will deploy lunar relay satellites and provide communication and navigation services to aid NASA's Artemis campaign and to "establish a long-term presence on the Moon."
The maximum potential value for the deal is $4.82 billion that will begin on Oct. 1 and run through Sept. 30, 2029.
"This contract marks an inflection point in Intuitive Machines' leadership in space communications and navigation," Chief Executive Steve Altemus said in the press release. "We're pleased to partner with NASA, as one team, to support the Artemis campaign and endeavors to expand the lunar economy."
NASA Contract Boosts Intuitive Machines
Intuitive Machines stock surged 38.33% to 7.47, hitting an intraday high of 8.95, during market action on Wednesday. On Tuesday, the stock fell 5.6% to 5.40. In February, LUNR shares hit a high of 13.25 before quickly retreating.
The company completed its reverse merger with Inflection Point Acquisition Corp., a SPAC deal, on Feb. 13, 2023. Intuitive Machines aims to build a system providing lunar surface access, lunar orbit delivery and communications at lunar distance.
NASA previously paid Intuitive Machines $118 million to build and fly Odysseus. In February, Odysseus became the first U.S. spacecraft to land on the moon in half a century. However, the Odysseus craft was fraught with operation issues.
On Wednesday, Benchmark analysts wrote that with this deal, Intuitive Machines has "established itself as the backbone of lunar data transmission." Benchmark added that the $4.82 billion award gives LUNR a strong backlog and long-term financial stability, "something many space peers lack."
Benchmark has a buy rating on LUNR with a stock price target of 10, representing an 85% upside compared to where LUNR traded at Tuesday's close.
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