Will Intuitive Machines (NASDAQ:LUNR) stock take another rocket ride this year? Or, is it destined for a crash landing? Only time will tell, but Intuitive Machines should capture the attention of starry-eyed speculators who can accept the risks involved with this type of investment.
Hailing from Texas, Intuitive Machines manufactures equipment for space exploration. The company supports “sustained robotic and human exploration to the Moon, Mars, and beyond.”
It’s not wise to over-leverage yourself on shares of Intuitive Machines, as there’s always a possibility of equipment problems and failed missions. Yet, as the space race heats up and an analyst sees moonshot potential, risk-tolerant investors might consider a small share position.
LUNR Stock Pops, but Then Drops
Going back to the beginning, Intuitive Machines was introduced to the public market through a business combination with special purpose acquisition company (SPAC) Inflection Point Acquisition Corp. In a short period, LUNR stock went from $10 to more than $100, but then pulled back to $12 and change.
Thus, we can already see how it’s risky to invest in Intuitive Machines. Still, investors can continue to monitor Intuitive Machines as there’s still demand for space exploration equipment.
The U.S. government could spur that demand in the 2020s. Austin Moeller, an analyst with Canaccord Genuity, observes that Intuitive Machines “seeks to capitalize on NASA’s rapid commercialization of its own space exploration operations.”
Moreover, Moeller noted that NASA has spent more than $35.2 billion on the Artemis program. Plus, space exploration agency expects to spend approximately $50.5 billion in addition to that through NASA’s fiscal year 2025.
Intuitive Machines Completes a Mission-Critical Test
Moeller gave LUNR stock a $35 price target and a “buy” rating. Is this too optimistic, though? Actually, this price objective might be spot-on as Intuitive Machines just marked a milestone in developing the company’s mission-critical equipment.
Here’s the scoop: Intuitive Machines has a lunar lander called Nova-C. According to a press release, Nova-C “has completed all structural testing.” This paves the way for the Intuitive Machines’ “first mission to the Moon later this year.”
Completing the structural testing of Nova-C “ensures the payloads and spacecraft subsystems can withstand the vibrations of launch,” according to Intuitive Machines CEO Steve Altemus. With this mission accomplished, Altemus expects a launch to take place later in 2023.
What You Can Do Now
Intuitive Machines is a relatively small company that could become a household name at some point. Prospective shareholders should watch for updates to see if the company succeeds in its expected Moon mission.
Financial traders should understand the risks involved if they’re thinking about investing in Intuitive Machines. It’s a promising company that appears to be taking an early lead in a niche industry. Yet, there’s no guarantee that Intuitive Machines will continue to achieve its space exploration objectives.
Therefore, investors might consider speculating on a small position in LUNR stock. It might launch into space in 2023, but be prepared for all possibilities.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.