Fly Me to the Profits

The Moon economy is hitting an inflection point, and Deutsche Bank $DB ( ▼ 1.69% ) believes Intuitive Machines $LUNR ( ▼ 7.75% ) is the primary vehicle for investors to hitch a ride.

Analyst Edison Yu recently reiterated a Buy rating on the stock, citing a major shift in national priorities toward establishing a permanent lunar presence.

While the stock has jumped 80% over the past three months, the bank sees some 13.5% upside yet to come.

Yu raised his price target to $18 as the market awaits details on the NASA Lunar Terrain Vehicle Services award, which could serve as a massive catalyst for the firm.

The bull case is bolstered by a strategic pivot from the biggest names in aerospace.

Elon Musk recently signaled that SpaceX is shifting focus toward building a city on the moon within a decade. Similarly, Jeff Bezos’ Blue Origin paused space tourism to reallocate resources toward human lunar capabilities.

According to Deutsche Bank, these moves validate the Moon as a "Mainstream endeavor."

Intuitive Machines stands out because it specializes in the infrastructure and connectivity required to power a lunar base. Unlike the crowded rocket launch sector, lunar services remain a much less competitive vertical.

Wall Street is largely in sync with this optimistic outlook.

8 of 10 analysts covering the stock currently rate it a Buy, according to LSEG data.

With the Moon becoming a clear priority for the current administration, Yu believes the company could soon trade at parity with higher-valued space tech peers.