Stifel initiates coverage on Intuitive Machines stock with Buy rating

Investing.com - Intuitive Machines Inc. (NASDAQ:LUNR) received a Buy rating from Stifel, which initiated coverage on the lunar infrastructure company with a price target of $18.00. This aligns with the broader analyst consensus of Strong Buy, according to InvestingPro data, with price targets ranging from $8.50 to $18.50.

Stifel analyst Jonathan Siegmann compared the current lunar opportunity to European exploration of the New World in the 1600s, positioning Intuitive Machines as similar to early trading companies that supported colonial development.

The firm highlighted Intuitive Machines’ early-mover advantage in the emerging lunar market, noting the company has established advantaged positions in multiple verticals including delivery services and lunar communication. InvestingPro data shows LUNR holds more cash than debt on its balance sheet, with a healthy current ratio of 3.7, providing financial flexibility to pursue these market opportunities.

Stifel also anticipates Intuitive Machines will expand its offerings with a new franchise program for transportation services on the lunar surface, further strengthening its market position.

The research firm suggested the next six months present an opportune time to buy Intuitive Machines shares ahead of pending contract decisions that could result in positive award announcements.

In other recent news, Intuitive Machines has secured an $8.2 million contract extension from the U.S. Air Force Research Laboratory to advance its nuclear power systems for spacecraft and lunar infrastructure. This funding builds on a previous $9.5 million program, supporting the company’s efforts to develop technology that overcomes solar power limitations for longer space missions. Additionally, Intuitive Machines has completed the acquisition of KinetX, a company specializing in deep space navigation systems, for $30 million. The transaction involved approximately $15 million in cash and 1.4 million shares of Intuitive Machines common stock.

Cantor Fitzgerald has reiterated an Overweight rating for Intuitive Machines, setting a price target of $16.00. Meanwhile, Canaccord Genuity has adjusted its price target for the company to $18.50 from $19.00, maintaining a Buy rating. This adjustment follows Intuitive Machines’ completion of a $345 million convertible debt offering, with senior notes maturing in 2030. These developments reflect the company’s ongoing strategic initiatives and financial maneuvers aimed at strengthening its position in space technology.

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