Cantor maintains Overweight on Intuitive Machines stock

Published 31/03/2025, 13:18
Cantor maintains Overweight on Intuitive Machines stock

On Monday, Intuitive Machines Inc. (NASDAQ:LUNR), currently trading at $8.07, maintained its Overweight rating and $15.00 price target from Cantor Fitzgerald, despite the recent mishap with its lunar lander. According to InvestingPro data, the stock has experienced significant volatility, with analyst targets ranging from $12 to $21. The company experienced a setback when its IM-2 mission’s Athena lander touched down inside a crater, off its targeted landing area on the lunar South Pole on March 6, 2023. The lander ended up on its side, an event that led to a significant drop in the company’s stock price, falling approximately 70% from its previous highs.

Intuitive Machines’ unfortunate landing did not deter Cantor Fitzgerald’s confidence in the company’s long-term prospects. The analyst emphasized that the company’s main revenue stream is derived from its space contracts, including OMES, NSN, and LTV, rather than its launch missions. Supporting this view, InvestingPro data shows the company achieved impressive revenue growth of 186.6% in the last twelve months, reaching $228 million. The firm also projects that Intuitive Machines will secure over 90% of the revenue from its IM-2 Mission despite the landing issue.

The analysis by Cantor Fitzgerald suggests that the recent decline in Intuitive Machines’ share price presents an attractive opportunity for investors. The firm’s position is supported by the expectation of the company’s continued performance and contract fulfillment.

Looking ahead, Intuitive Machines is planning its third lunar mission, which is scheduled for 2026. This future endeavor represents an ongoing commitment to its space exploration objectives and the potential for future revenue generation.

Cantor Fitzgerald’s reiteration of the Overweight rating and price target reflects a belief in the resilience and potential growth of Intuitive Machines despite the recent challenges it faced with the IM-2 mission.

In other recent news, Intuitive Machines Inc. reported a significant revenue increase of 79% year-over-year for Q4 2024, reaching $54.7 million, although this fell short of the $57.57 million forecast by analysts. The company ended the fiscal year with a record contracted backlog of $328 million and a robust cash balance of $385 million by March 2025. Despite the operational loss widening to $13.4 million, the company’s strong financial position has been highlighted by Benchmark, which maintained a Buy rating with a $16 price target, citing a strategic focus on high-margin data services. Meanwhile, Cantor Fitzgerald lowered its price target to $13 but maintained an Overweight rating, seeing the recent stock sell-off as an attractive entry point for investors. Canaccord Genuity also adjusted its price target to $21 while retaining a Buy rating, emphasizing confidence in the company’s long-term growth prospects and backlog opportunities. Intuitive Machines is advancing its space exploration initiatives with plans for the upcoming IM-3 mission, which will deploy the first NSN satellite into lunar orbit, and is actively exploring defense technology applications for its assets. The company continues to position itself strategically within the space sector, underscoring its potential for sustained growth.

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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