Cantor Fitzgerald cuts Intuitive Machines stock target to $13

Published 25/03/2025, 12:52
Cantor Fitzgerald cuts Intuitive Machines stock target to $13

On Tuesday, Cantor Fitzgerald analyst Andres Sheppard adjusted the price target for Intuitive Machines Inc. (NASDAQ:LUNR) to $13.00, down from the previous $15.00, while maintaining an Overweight rating on the stock. Currently trading at $9.22, with analyst targets ranging from $12 to $21, the stock has shown significant volatility. According to InvestingPro analysis, the company’s shares have demonstrated high price volatility, though they’ve recently shown strength with a 31.5% gain over the past week. Sheppard highlighted the recent sell-off as an opportunity, stating that the current stock levels present an attractive entry point for investors.

Intuitive Machines experienced a significant drop in share price, approximately 70%, following the landing of its IM-2 Mission Lunar Lander, Athena, which touched down inside a crater and on its side, 250 meters away from its intended destination at the lunar South Pole. This event occurred on March 6 and contrasted with a lesser 9% decline in the S&P 500 Index from February 20 to March 11. Despite the mishap, the company was able to accelerate its payload operations.

The company’s payload operations included the operation of NASA’s Prime One drill suite, Nokia (HE:NOKIA)’s lunar surface communication system, the Micronova Hopper, and several commercial payloads, such as a Japanese micro rover and an edge-computing data center. Intuitive Machines has disclosed that it expects to capture over 90% of the revenue from its IM-2 Mission and anticipates securing the majority of the remaining $15.8 million final success payment.

Revenue for Intuitive Machines primarily stems from its space contracts, including OMES, NSN, and LTV, rather than launch missions. The company generated $228 million in revenue over the last twelve months, with analysts expecting continued growth. Looking ahead, the company plans a third mission to a flatter area near the moon’s equator, anticipated between February and April 2026, and an IM-4 Mission in 2027. Additionally, management is preparing to bid on a new commercial payload contract in May, with NASA’s selection expected in July, and foresees another NASA lunar delivery program announcement in late 2025. For investors seeking deeper insights, InvestingPro offers comprehensive analysis with 12+ additional ProTips and detailed financial metrics in its exclusive Pro Research Report, helping you make more informed investment decisions in the space sector.

In other recent news, Intuitive Machines Inc. reported a notable 79% increase in revenue for Q4 2024, reaching $54.7 million, although this fell short of the $57.57 million forecast by analysts. Despite this miss, the company ended the quarter with a strong cash position of $385 million by March 2025. The company recorded an operating loss of $13.4 million, up from the previous year’s $7.5 million, while maintaining a record contracted backlog of $328.3 million. Intuitive Machines provided revenue guidance for 2025, projecting between $250 million and $300 million, with expectations to achieve positive adjusted EBITDA in 2026.

Canaccord Genuity recently adjusted its price target for Intuitive Machines to $21 from $22, maintaining a Buy rating, highlighting confidence in the company’s long-term revenue growth prospects. The company is engaged in various projects, including NASA’s Commercial Lunar Payload Services (CLPS) program and the Lunar Terrain Vehicle (LTV). CEO Steve Altemus has been invited to discuss the next phase of the CLPS program with the House of Representatives, indicating potential for larger cargo lunar deliveries. The discussions in Congress about potentially doubling the Space Force budget in fiscal year 2026 could also benefit Intuitive Machines.

Despite the ongoing Continuing Resolution in Congress, milestone payments for the LTV and CLPS contracts are expected to continue, providing financial stability. Intuitive Machines aims to capitalize on its strategic advancements in lunar missions and data services, with a focus on expanding into new markets and enhancing its financial resilience.

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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