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Tuesday, Benchmark analysts reiterated their Buy rating on Intuitive Machines Inc. (NASDAQ:LUNR) shares, maintaining a $16.00 price target, representing significant upside from the current price of $9.20. While InvestingPro analysis suggests the stock is currently trading above its Fair Value, analyst targets range from $12 to $21, reflecting optimism about the company’s potential. The firm’s analysis highlighted the company’s strong financial position and strategic focus on high-margin data services.
Intuitive Machines ended the fiscal year 2024 with a record backlog of $328 million, marking a 22% year-over-year increase. The company reported a robust cash position of over $385 million in March and provided positive EBITDA guidance for the run-rate of fiscal year 2025, as well as for the full fiscal year 2026. With a strong current ratio of 2.97 and more cash than debt on its balance sheet, InvestingPro data confirms the company’s solid liquidity position. Despite the less than optimal outcome of the IM-2 lunar mission and external pressures such as Elon Musk’s advocacy for Mars exploration and budget scrutiny, Benchmark analysts pointed to Intuitive Machines’ solid financial footing and backlog as providing operational stability and the ability to continue innovating.
The company’s NSN communications relay contract, valued at over $4 billion, is expected to serve as a cornerstone for lunar and potentially deeper space communication networks, boasting an approximate 80% profit margin compared to the roughly 10% margin of lunar lander missions. Intuitive Machines plans to leverage this asset by selling excess data capacity, adopting a commercial revenue model.
The upcoming IM-3 mission to the Moon will include the first NSN satellite, which will be deployed into lunar orbit. Intuitive Machines has successfully completed two lunar missions in the past year, reinforcing their capabilities. The company’s commercial model is also seen as a competitive advantage in the space race with China, even as global interest may shift towards Mars.
Additionally, Intuitive Machines is exploring Defense Technology applications for the NSN and other assets, recognizing the growing importance of space-based defense capabilities. The company’s strategic positioning and diversified approach to space exploration and services underscore its potential for sustained growth and profitability. With impressive revenue growth of 186.72% year-over-year and a market capitalization of $1.39 billion, investors can access detailed financial analysis and 12 additional exclusive insights through InvestingPro’s comprehensive research reports.
In other recent news, Intuitive Machines Inc. reported a significant revenue increase for Q4 2024, reaching $54.7 million, a 79% growth year-over-year. However, this figure fell short of analyst expectations, which were set at $57.57 million. Despite the revenue miss, the company experienced a substantial stock surge, indicating investor confidence in its strategic direction and market positioning. The company’s operating loss widened to $13.4 million, but its cash reserves increased to $385 million by March 2025, suggesting a strong financial position.
Cantor Fitzgerald recently lowered its price target for Intuitive Machines from $15 to $13, maintaining an Overweight rating, while Canaccord Genuity adjusted its target from $22 to $21, keeping a Buy rating. These adjustments reflect varying levels of confidence in the company’s long-term growth prospects and backlog opportunities. Intuitive Machines is also focusing on future missions, with plans for a third lunar mission near the moon’s equator between February and April 2026. The company anticipates capturing over 90% of the revenue from its IM-2 Mission and securing the majority of the remaining $15.8 million final success payment.
Additionally, CEO Steve Altemus has been engaging with the House of Representatives to discuss the next phase of the Commercial Lunar Payload Services program, which may involve larger lunar deliveries. This aligns with ongoing discussions in Congress about potentially doubling the Space Force budget in fiscal year 2026, which could benefit Intuitive Machines.
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