Cantor Fitzgerald maintains $15 target on Intuitive Machines stock

On Friday, Cantor Fitzgerald reiterated its Overweight rating on Intuitive Machines Inc. (NASDAQ:LUNR) with a steady price target of $15.00. The reaffirmation comes after the company’s second lunar mission, where the IM-2 mission lunar lander, named Athena, experienced an off-target landing. Athena landed inside a crater, approximately 250 meters from its intended landing site at the lunar South Pole and on its side. This event led to a sharp decline in Intuitive Machines’ stock price, which fell about 70% from its previous highs. According to InvestingPro data, the stock is now trading at $6.70, significantly below analysts’ targets ranging from $12 to $22, suggesting potential upside opportunity. The RSI indicates the stock is currently in oversold territory.

Despite the mishap, Cantor Fitzgerald analyst Andres Sheppard emphasized the company’s revenue streams, stating, "While the lander’s orientation was unfortunate, we remind investors that LUNR’s primary source of revenue is not from its launch missions, but rather from its space contracts." The analyst pointed out that Intuitive Machines has robust contracts in place, including OMES, NSN, and LTV, which are the main contributors to its financial performance. InvestingPro data reveals impressive revenue growth of 134.5% in the last twelve months, with the company maintaining a healthy current ratio of 1.77, indicating strong ability to meet short-term obligations.

Furthermore, Sheppard expressed confidence in the company’s ability to recover most of the revenue from the IM-2 Mission, projecting that Intuitive Machines would secure over 90% of the mission’s expected revenue. This optimistic outlook is supported by the belief that the recent decline in share price presents an attractive opportunity for investors.

Looking ahead, Intuitive Machines is planning its third mission to the moon, which is scheduled for 2026. The company’s continued efforts in lunar exploration and its strong contract base are key factors in Cantor Fitzgerald’s positive rating and price target for the stock. Despite the setback with the IM-2 mission, the firm’s outlook for Intuitive Machines remains bullish.

In other recent news, Intuitive Machines has completed the redemption of its outstanding warrants, generating approximately $148 million in cash proceeds. This financial maneuver leaves the company with no remaining warrants and a cash balance of about $385 million. Additionally, Intuitive Machines secured a $40 million revolving credit facility with Stifel Bank, which remains unborrowed. In terms of analyst perspectives, Cantor Fitzgerald has maintained an Overweight rating with a $15 price target, while Canaccord Genuity adjusted its target to $22 from $26, citing challenges with the IM-3 mission’s landing environment. Concerns have arisen following reports of complications with the Athena lander’s positioning on the moon, though communication with the spacecraft is intact. The company is managing the situation by reallocating energy to critical systems and plans to provide further updates. Moreover, Intuitive Machines has appointed James J. Frelk as Senior Vice President of Data Services, highlighting its focus on expanding data relay services and strategic partnerships. These developments reflect the company’s ongoing efforts to strengthen its financial and operational standing in the space industry.

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