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Inflection Point Acquisition Corp. (NASDAQ:IPAX) was initiated at Buy by Benchmark on Thursday as the firm anticipates upside after a merger with Intuitive Machines.
Equity analyst Josh Sullivan outlined a bullish thesis on Intuitive Machines, a decade-old company focused on the lofty goals of establishing lunar surface access, communication, and space commerce. He advised that the company is likely to be a major beneficiary of heavy investment by both public and private entities in space, and especially lunar, initiatives.
“There is currently an underappreciated strategic race to the Moon between the U.S. and China centered on water. Moon accessible water/ice is expected to support permanent habitats as well as the elements of rocket fuel for missions to Mars, return missions and deep space,” the initiation explained. “The winner of this race could control the “oil” of space travel, and NASA sees the next two years determining this race.”
Sullivan added that Lunar management is highly tied into NASA, with CEO Stephen Altemus serving as the Deputy Director of the Johnson Space Center prior to starting Intuitive. Altemus’ founding of the company in 2023 has also helped the company gain an early advantage over the many new entrants into the growing space exploration industry, according to Sullivan.
Benchmark assigned the stock a $14 price target alongside the Buy initiation. A SPAC IPO is expected by the close of the first quarter.
Read more on the details of the SPAC merger.
