Canaccord cuts Intuitive Machines stock target to $21, keeps buy rating

Published 25/03/2025, 12:28
Canaccord cuts Intuitive Machines stock target to $21, keeps buy rating

On Tuesday, Canaccord Genuity adjusted its price target for Intuitive Machines Inc. (NASDAQ:LUNR) to $21 from the previous $22 while retaining a Buy rating on the company’s stock. Currently trading at $9.22, the stock has shown remarkable momentum with a 31.5% gain over the past week, according to InvestingPro data. The adjustment comes amid continued confidence in the company’s long-term revenue growth prospects and robust backlog opportunities. These opportunities include various projects such as the Lunar Terrain Vehicle (LTV), Volatiles Investigating Polar Exploration Rover (VIPER), NASA’s Simplex-1 mission (NSNS), commercial Nebula missions, and the IM-5 and/or IM-6 missions.

Intuitive Machines’ CEO, Steve Altemus, was recently invited to address the House of Representatives to discuss the next phase of the Commercial Lunar Payload Services (CLPS) program. This could potentially involve larger cargo lunar deliveries, aligning with the Nova-D design capable of carrying at least 1,500 kg of payload mass. The company is also expected to benefit from the ongoing discussions in Congress about potentially doubling the Space Force budget in fiscal year 2026.

Despite the current Continuing Resolution (CR) in Congress, which may delay the start of new programs, milestone payments for both the LTV and CLPS contracts are anticipated to continue throughout the calendar year. The company’s strong financial position is evidenced by its healthy current ratio of 2.97 and more cash than debt on its balance sheet, as revealed by InvestingPro analysis. This is seen as a positive for Intuitive Machines, as it provides financial stability while the House Republicans work towards completing special elections and passing a final budget for fiscal year 2025. The President’s Budget (PresBud) for fiscal year 2026 is expected to be released in May.

Canaccord’s confidence in Intuitive Machines remains strong, citing the company’s attractive entry point for long-term investors, its growth profile, and the expectation of positive adjusted EBITDA generation in 2026. The price target of $21 is based on a 6.4x revenue multiple applied to Canaccord’s 2026 revenue estimate of $424 million for Intuitive Machines. With analyst targets ranging from $12 to $21 and projected revenue growth of 188% for the current year, investors seeking deeper insights can access comprehensive analysis and 12 additional ProTips through InvestingPro’s detailed research reports.

In other recent news, Intuitive Machines Inc. reported a 79% year-over-year increase in revenue for the fourth quarter of 2024, reaching $54.7 million. This figure, however, fell short of analyst expectations of $57.57 million. Despite the revenue miss, the company saw a notable increase in its contracted backlog to $328.3 million and ended the quarter with a strong cash position of $207.6 million, which further increased to $385 million by March 2025. The company also reported an operating loss of $13.4 million, up from $7.5 million in the prior year, attributed to higher selling, general, and administrative expenses.

Intuitive Machines has provided revenue guidance for 2025, projecting between $250 million and $300 million, and aims for positive adjusted EBITDA by 2026. The company’s strategic focus includes potential contract awards for NASA’s Commercial Lunar Payload Services and the Lunar Terrain Vehicle. CEO Steve Altamis emphasized the importance of lunar missions and the expansion into data services. Additionally, the company has been involved in discussions about opportunities in Mars infrastructure and the flexibility of its IM3 mission timeline. Analyst firms such as ROTH Capital and B. Riley Securities have shown interest in these developments, with questions about the company’s strategic moves and future contract opportunities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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