Lunar company Intuitive Machines' stock jumps more than 40% after NASA moon satellite contract

• Intuitive Machines' stock rose more than 40% on Wednesday.
• NASA awarded the lunar-focused company a major contract to build moon data satellites.
• The five-year contract has a maximum total value of $4.82 billion.

Intuitive Machines' stock jumped in early trading Wednesday after NASA awarded the lunar-focused company a major contract to build moon data satellites.

"This contract marks an inflection point in Intuitive Machines' leadership in space communications and navigation," Intuitive Machines CEO Steve Altemus said in a statement.

NASA said the company was the sole awardee to build "lunar relay systems" for the agency's Near Space Network, a system that communicates with government and commercial missions that are up to one million miles from Earth. The contract will see Intuitive Machines build and deploy a constellation of lunar satellites to provide communications and navigation services, especially for NASA's Artemis program.

The five-year contract, which has a maximum total value of $4.82 billion, will incrementally issue awards as work progresses. Intuitive Machines' initial NSN award is worth $150 million.

Intuitive Machines shares surged more than 40% in afternoon trading from its previous close at $5.40 a share.

Cantor Fitzgerald analyst Andres Sheppard, whose firm has a buy-equivalent rating and a $10 price target on the stock, called the NSN contract a boon for the company.

"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," Sheppard wrote in a note to clients.

The stock has more than doubled year to date as Intuitive Machines has steadily racked up NASA contracts.

Intuitive Machines made history in February as the first U.S. company to soft land a cargo mission on the moon's surface. Since then, it became one of three companies awarded contracts under NASA's $4.6 billion crew lunar rover contract and also added its fourth cargo delivery contract with a $117 million award last month.

Benchmark's Josh Sullivan, who also has a buy rating and $10 price target, said he believes the latest award shows that NASA views Intuitive Machines' experience "as elite."

"LUNR's path to becoming the preeminent lunar infrastructure player took a big step forward with NSN," Sullivan wrote.

The company is preparing to launch its next cargo mission to the moon, IM-2, in the first quarter. Analysts expect the company's first NSN lunar satellite will launch on the IM-3 mission that is scheduled for late 2025.