MW This sector is a great place for investors to avoid tariff impact, analyst says

By James Rogers

The future is bright for space companies Intuitive Machines and Rocket Lab, according to Cantor Fitzgerald, and it's not just about moon landings

The space sector offers investors refuge from the turmoil of tariffs, says analyst firm Cantor Fitzgerald, which highlighted strong prospects for two of the industry's pre-eminent names.

"Overall, we see the space industry as a great place to mitigate tariff impact, and we see [Intuitive Machines] as well-positioned ahead of several material near-term potential catalysts," Cantor analyst Andres Sheppard wrote in a note Tuesday.

Shares of space-exploration company Intuitive Machines Inc. (LUNR) have risen 128% in the last 12 months, boosted by high-profile lunar missions and lucrative contract wins such as for NASA's Near Space Network, a deal that could be worth up to $4.82 billion. The S&P 500 index SPX has gained 12.3% over the past year.

The Houston-based company also maintained its full-year outlook when it reported first-quarter results earlier this week, while a number of other companies have either lowered or pulled their guidance in recent weeks, citing tariff uncertainties.

Last year, Intuitive Machines' Odysseus lunar lander made history when it became the first commercial lander to successfully touch down on the moon's surface, although it then fell onto its side. Earlier this year the company ended its second moon-landing mission after less than 24 hours on the lunar surface, after its Athena lander also toppled over.

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Sheppard described the Athena landing as "unfortunate" but noted that Intuitive Machines' primary source of revenue is not from its launch missions, but from major contracts. The analyst cited, in particular, the Near Space Network; NASA's Omnibus multidiscipline Engineering Services contract, which is worth up to $719 million; and Intuitive Machines' Lunar Terrain Vehicle deal with the space agency.

Last year NASA awarded the company a $30 million contract to complete a feasibility roadmap for the LTV rover using Intuitive Machines' Nova-D lunar lander.

The analyst sees other potential positives for Intuitive Machines that could include contract announcements under NASA's Commercial Lunar Payload Services, which are expected later this year and, potentially, in early 2026. Sheppard also expects to see data-services revenue from the Near Space Network contract ramp up in the second half of 2025. Cantor reiterated its overweight rating for Intuitive Machines.

Shares of Rocket Lab USA Inc. $(RKLB)$, meanwhile, are up 454.6% over the last 12 months. The space-launch company has emerged as something of a darling among space stocks, boosted by the company's strong financial performance in recent years.

In a recent note, Sheppard described Rocket Lab as "a great place to avoid tariffs." The company, he said, remains on track for the first launch of its reusable Neutron rocket in the second half of 2025.

Related: Intuitive Machines' stock skyrockets as space-exploration company looks beyond the moon

The analyst also noted that the Neutron rocket has been selected to compete for the U.S. Space Force's National Security Space Launch program, which has a value of up to $5.6 billion.

"Overall, we continue to believe [Rocket Lab] is amongst the best positioned in the growing space economy, both via its space systems and launch services, and we see the space industry as an attractive place to mitigate tariff impacts," Sheppard wrote. Cantor reiterated its overweight rating for Rocket Lab.

-James Rogers

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May 14, 2025 16:34 ET (20:34 GMT)

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