Intuitive Machines has been receiving a lot of attention recently after its successful landing on the Moon's South Pole on February 22, 2024.
Prior to this, LUNR stock soared, soaring more than 50% on February 20th. Although the stock has fallen since then, Canaccord's analysts remain bullish, with price targets suggesting significant upside potential from current levels.
LUNR is back in the spotlight
Following recent achievements, NASA announced on Wednesday that it had selected the company as the top candidate to lead a team of contractors developing the Lunar Terrain Vehicle (LTV), a modern-day version of the Moon. LUNR was once again a hot topic this week. Buggy” (Apollo program's lunar vehicle).
Canaccord explained that the new platform, dubbed “Moon Racer,” will be built by a consortium of Intuitive Machines that includes partners such as Boeing (NYSE:). michelin (EPA:), Northrop Grumman (NYSE:) and AVL.
Boeing and General Motors (NYSE:) built the original LRV/moon buggy. Under NASA's original mission order, Intuitive Machines received his $30 million contract to conduct a one-year feasibility study, with the cost split 50-50 among the company's other partners/suppliers. NASA also awarded feasibility study contracts for Lunar Outpost and Venturi Astrolab.
“But ultimately, we expect to have narrowed down the final Lunar Orbital Vehicle Services (LTVS) contract to a single vendor by this time next year (as NASA indicated in a press release).” This program is expected to total $4.6 billion,” Canaccord added.
Analysts see significant upside potential for LUNR stock
Analysts at Canaccord said LUNR's successful landing at the lunar south pole, the first by a private company and the first U.S. to land on the moon in 51 years, likely gave the company an advantage in attracting NASA's LTV. “I believe.
As a result, the company gave the company a “buy” rating and maintained its price target at $14.00 per share in a note on Thursday. With LUNR stock currently trading above $6, the price target indicates strong upside potential if Canaccord's bullish theory comes true.
“LTV/LTVS represents the largest program opportunity for Intuitive Machines and is currently at least partially in the backlog pending final downward selection by NASA,” the company said. ing.
The company also believes investors should pay close attention to impending announcements in the second quarter. With this announcement, Intuitive Machines is expected to win a $130 million contract for the IM-4 CLPS mission (as the 2024 budget was passed), as well as the possibility of new contracts. for the Near Space Network Services (NSNS) program “to provide lunar data relay to Earth using a constellation of small satellites to be deployed during his upcoming CLPS mission.”
