The stock of space exploration company Intuitive Machines (NASDAQ: LUNR) strongly defied gravity on Thursday. It closed the day more than 24% higher, thanks in no small part to news of a major price-target increase from an analyst. That move came mere days after the company delivered some of the best news it’s ever reported.
Over the moon about NASA’s moon contract
The raise was enacted by B. Riley‘s Mike Crawford, who now feels a fair value estimation for Intuitive Machines should be considerably higher. He raised his by 50%, to $12 per share from the previous $8, and maintained the existing buy recommendation. The new price target anticipates upside of 29% on the stock’s most recent close.
It isn’t hard to be glowingly bullish on Intuitive Machines these days. On Tuesday, the company was selected by the National Aeronautics and Space Administration (NASA) as the sole business to establish a communications system between our planet and the moon.
In the grand tradition of major federal contracts, this one is potentially worth quite a bit of coin. All told the arrangement, which will be in force for five years with an option to extend to 10, could pay out as much as $4.8 billion for the stipulated services.
A surprise solo selection
Crawford did not expect Intuitive Machines would be the only winner of the contract; he anticipated one or two other providers would also be selected for the NASA project. This added to his impression that the ambitious company “is quickly establishing itself as a full-service space exploration company on the cusp of layering in hundreds of millions of dollars of high-margin services revenue, enabling a long tail of robust free cash flow generation.”
Should you invest $1,000 in Intuitive Machines right now?
Before you buy stock in Intuitive Machines, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Intuitive Machines wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $694,743!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of September 16, 2024
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Why Intuitive Machines Stock Rocketed 24% Skyward on Thursday was originally published by The Motley Fool
