One small step for the U.S. could be one giant leap forward for Intuitive Machines as the nation signals it could soon return to the moon, according to Deutsche Bank. The bank, which has a buy rating on Intuitive Machines, expects the stock to benefit from renewed interest in lunar travel, a Monday note from its analysts shows. "As we await the details for the NASA LTVS award (Lunar Terrain Vehicle Services), we think perception around the broader Moon economy may have just gone through a key inflection point," Deutsche Bank research analyst Edison Yu wrote in the note. LUNR 3M mountain Intuitive Machines in the past three months His price target of $18 calls for more than 5% upside from Wednesday's close. The analyst called out two major signs the U.S. intends to set foot on the moon again. First, SpaceX CEO Elon Musk said in a social media post on Sunday that his company had shifted its focus to building a "self-growing city" on the moon — a feat he believes is achievable in less than 10 years. Second, Jeff Bezos' aerospace manufacturer Blue Origin late last month paused its suborbital space tourism flights for at least two years, with the aim of reallocating its resources to "human lunar capabilities." Lunar infrastructure and connectivity are much less competitive verticals of the space industry, particularly compared to launch and satellite communications, according to Deutsche Bank. That leaves Intuitive Machines to be one of the few beneficiaries of heightened demand for services that support U.S. crews on the moon. Intuitive Machines provides infrastructure and connectivity services that could be used to power a U.S. base on the moon, although the firm doesn't compete in rocket transportation services, Yu said. "Now, with the Moon being a clear priority for the administration and inherently more of a Mainstream endeavor, we wonder if Intuitive Machines actually can trade closer to parity [with other space stocks] going forward," the analyst wrote. Deutsche Bank's call on Intuitive Machines aligns with consensus on the Street. Eight of the 10 analysts that cover the stock have a buy rating on shares, per LSEG. Intuitive Machines' stock has jumped 80% over the past three months.
