NASA’s ambitious lunar base project "Ignition" is sparking investor excitement, but one space infrastructure firm might be surprisingly undervalued.
This week saw space stocks skyrocket, fuelled by NASA’s administrator Jared Isaacman unveiling the "Ignition" plan. The initiative outlines a vision for establishing a permanent base on the moon, triggering a buying frenzy.
The space agency intends to launch numerous uncrewed missions to deliver essential cargo and scientific equipment to the lunar surface. Crewed Artemis missions are slated to begin imminently, with launches ramping up to a bi-annual pace shortly thereafter. The entire endeavor carries a $20 billion price tag.
While companies like Rocket Lab (NASDAQ: RKLB) experienced significant gains, surging over 10% on Wednesday, Redwire Corporation (NYSE: RDW) saw a comparatively modest increase of just 1%. This muted reaction to the opportunities presented by the "Ignition" program may be a missed opportunity.
Rocket Lab, with its upcoming Neutron rocket, is well-positioned to secure NASA contracts for lunar cargo missions. NASA aims to diversify its launch providers and achieve a cadence of one cargo mission per month, alongside two crewed missions annually.
However, the core of "Ignition" lies in establishing a robust lunar infrastructure, capable of sustaining long-term human presence. This is where Redwire’s expertise becomes invaluable. Redwire specialises in space infrastructure, offering critical engineering services, spacecraft docking mechanisms, solar power solutions, communication antennas, and even 3D printing technologies for in-space manufacturing.
Given NASA’s focus on building a self-sufficient lunar base, Redwire’s involvement seems almost inevitable. While Redwire hasn’t yet been named as a contract recipient under "Ignition," the program is still in its early stages. Similarly, Rocket Lab also awaits formal contract awards. The future success of the "Ignition" program hinges on reliable infrastructure, making Redwire a key player to watch.
