Shares of the space exploration company Intuitive machines (NASDAQ:LUNR) On Thursday, it defied gravity in a big way. It closed the day up more than 24%, thanks in large part to news of a significant price target increase by one analyst. That move came just days after the company delivered some of the best news it has ever reported.
Excited about NASA's lunar contract
The increase was enacted by B. RileyMike Crawford, who now believes Intuitive Machines' fair value estimate should be considerably higher, raised his recommendation by 50% to $12 per share from $8 previously, while maintaining the existing buy rating. target price anticipates a 29% rise in the stock's most recent close.
These days, it's not hard to be optimistic about Intuitive Machines. On Tuesday, the National Aeronautics and Space Administration (NASA) selected the company as the only company that will establish a communications system Between our planet and the moon.
In the grand tradition of big federal contracts, this one could be worth a considerable amount. In total, the agreement, which will be in effect for five years with an option to extend it to 10, could pay up to $4.8 billion for the services stipulated.
A surprise solo selection
Crawford did not expect Intuitive Machines to be the sole winner of the contract; he anticipated that one or two other vendors would also be selected for the NASA project. This added to his impression that the ambitious company “is rapidly establishing itself as a full-service space exploration company on the cusp of adding hundreds of millions of dollars of high-margin services revenue, which will enable a long tail of solid free cash flow generation.”
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Why Intuitive Machines shares soared 24% on Thursday Originally published by The Motley Fool
