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Cantor Fitzgerald has reiterated its Overweight rating on Intuitive Machines Inc. (NASDAQ:LUNR) with a maintained price target of $13.00. The reaffirmation of the stock's rating comes after Intuitive Machines' second lunar mission in the first quarter of 2025, which encountered a setback when its lander, Athena, touched down approximately 250 meters off its intended landing site at the moon's south pole, resulting in the lander being on its side. This event led to a significant drop in Intuitive Machines' share price, with year-to-date returns showing a decline of 60.05%, according to InvestingPro data.
Despite the mishap, Cantor Fitzgerald analysts highlight that the company's main revenue streams are derived from its space contracts, including the OMES, NSN, and LTV, rather than its launch missions. The firm anticipates that Intuitive Machines will secure over 90% of the revenue from its IM-2 Mission.
Looking ahead, Intuitive Machines is planning its third lunar mission for 2026. The company's business model is supported by a high degree of vertical integration, with management stating that over 80% of its components are produced in-house or obtained domestically. This could mitigate the impact of tariffs on the company's operations.
In light of the recent downturn in the company's equity, Cantor Fitzgerald suggests that Intuitive Machines might look into merger and acquisition opportunities, as hinted by management in the last earnings call. The company's financial position appears strong, with a current ratio of 2.97 and more cash than debt on its balance sheet. InvestingPro's comprehensive analysis indicates a 'Weak' overall Financial Health Score of 1.58 out of 5, though the company's growing cash position, which stood at $207.6 million at the end of the fourth quarter of 2024, could facilitate such activities.
Furthermore, Intuitive Machines confirmed at the Space Symposium that it remains the sole awardee of the NSN contract, potentially worth around $4.82 billion, which involves building a satellite constellation to provide communication and navigation services for NASA. Initial revenue recognition from this contract is expected to be $150 million through 2027. Additionally, the company's contracted backlog was reported at approximately $316.2 million as of the third quarter of 2024, with the roughly $719 million OMES contract award still on track. Management also confirmed the company's efforts to secure the Lunar Terrain Vehicle contract. The company has demonstrated strong revenue growth, with a 186.61% increase in the last twelve months, though analysts note the company is not expected to be profitable this year.For investors seeking comprehensive analysis of LUNR and other space technology companies, InvestingPro offers detailed Research Reports covering over 1,400 US stocks, providing actionable insights and in-depth financial metrics.
In other recent news, Intuitive Machines has secured a significant partnership with SpaceX, selecting the Falcon 9 rocket for its fourth lunar delivery mission, IM-4, scheduled for 2027. This mission aims to enhance NASA's Near Space Network Services by launching lunar data relay satellites, contributing to both NASA and commercial operations. Additionally, Intuitive Machines has maintained its Overweight rating from Cantor Fitzgerald, despite a recent mishap with its IM-2 mission's lunar lander. Cantor Fitzgerald adjusted its price target to $13, emphasizing the opportunity for investors due to the stock's recent decline. Benchmark analysts also reiterated a Buy rating, highlighting the company's strong financial position, including a record backlog of $328 million and a robust cash position. Intuitive Machines plans to leverage its NSN communications relay contract, valued at over $4 billion, to support its commercial revenue model. Canaccord Genuity adjusted its price target to $21, citing confidence in the company's long-term growth prospects and the potential for larger lunar deliveries. The company's CEO, Steve Altemus, recently addressed the House of Representatives regarding the next phase of the Commercial Lunar Payload Services program, which aligns with their strategic goals.
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