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On Friday, Canaccord Genuity analyst Austin Moeller revised the price target for Intuitive Machines Inc. (NASDAQ:LUNR), reducing it to $22 from the previous $26, while still recommending the stock as a Buy. Currently trading at $11.26, LUNR has experienced significant volatility, with InvestingPro data showing a 22.77% decline over the past week despite an impressive 123% gain over the last six months. Moeller’s comments highlighted the company’s need to perform a vertical touchdown during its IM-3 mission, scheduled for the first quarter of 2026. Despite the adjustment in the price target, the analyst emphasized the existing contracts for the subsequent two missions with NASA.
Earlier in the week, a successful soft landing was achieved by Firefly’s Blue Ghost lander at the Sea of Crises site on the Moon. Moeller pointed out that this site offered a more straightforward landing scenario with better communication links to Earth due to its higher longitude position in the Moon’s North-Northeast quadrant. In contrast, Intuitive Machines’ IM-3 mission aims for a landing at Reiner Gamma in the Ocean of Storms, which is located in the Western region of the Lunar Near Side, presenting a more challenging landing environment. With a market capitalization of $1.7 billion and a healthy current ratio of 1.77, InvestingPro analysis indicates the company maintains strong liquidity to support its ambitious missions.
The analyst noted that the Athena has already landed outside the 50-meter target circle at its designated Mons Mouton site. Despite the challenges, Moeller believes the stock’s current selloff is excessive, especially if the customer payloads on the mission successfully collect the intended data, justifying their investment in the delivery service.
The lowered price target of $22 is based on a 6.6x enterprise value to revenue (EV/Revenue) multiple applied to Canaccord Genuity’s 2025 revenue estimates for Intuitive Machines. Moeller mentioned that the firm would await further clarity on the total milestone payments collected during the IM-2 mission before reassessing their valuation. According to InvestingPro, which offers comprehensive analysis of over 1,400 US stocks, LUNR shows promising revenue growth forecasts of 188% despite currently weak gross margins of 2.88%. Investors can access detailed financial health scores, 13 additional ProTips, and an extensive Pro Research Report for deeper insights into LUNR’s investment potential.
In other recent news, Intuitive Machines has faced complications with its IM-2 mission, as the Nova-C class lunar lander, Athena, encountered positioning issues on the moon. The company has been actively managing the situation by reallocating energy to critical components, and a press conference is expected to provide further updates. In a strategic move, Intuitive Machines appointed James J. Frelk as Senior Vice President of Data Services to enhance its offerings in data transmission services, aligning with national security space operations. Meanwhile, the company is preparing for the Athena lander’s imminent launch, which will carry scientific instruments and customer payloads, including a Japanese rover and Nokia (HE:NOKIA)’s 4G communication technology tests.
Analyst opinions on Intuitive Machines have varied, with Canaccord Genuity maintaining a Buy rating and a $26 price target, citing the company’s potential to simplify its capital structure and increase cash reserves through warrant redemption. Conversely, BofA Securities initiated coverage with an Underperform rating and a $16 price target, expressing concerns over the company’s valuation and future revenue growth prospects. The contrasting analyst views highlight differing expectations regarding Intuitive Machines’ ability to expand its customer base and mission portfolio. As the company navigates these challenges, investors remain attentive to its developments in the competitive space industry.
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