Intuitive Machines Inc. (NASDAQ:LUNR) received a price target increase from Roth/MKM, lifting the target to $10.00 from the previous $7.00, while the firm maintained a Buy rating on the company's stock. This adjustment follows the announcement that Intuitive Machines has secured a fourth NASA Commercial Lunar Payload Services (CLPS) contract.
The company is set to deliver scientific payloads to the Moon on its upcoming fourth lunar mission, IM-4.
Roth/MKM's decision to raise the price target is rooted in NASA's continued selection of Intuitive Machines for delivering critical scientific payloads to the Moon, which aligns with the Artemis program's objectives.
The Artemis program is part of NASA's broader efforts to return humans to the Moon and establish a sustainable presence there as a precursor to future Mars missions.
The increased price target reflects the analyst's confidence in Intuitive Machines' role in the Artemis program. The firm acknowledges the significance of the company's consistent collaboration with NASA and its contribution to the planned manned Moon missions slated for the end of this decade.
The latest contract award highlights Intuitive Machines' expanding involvement in lunar exploration and its growing importance as a partner for NASA's lunar initiatives.
Intuitive Machines' stock valuation upgrade by Roth/MKM underscores the company's growing prominence in the space exploration industry and its potential for future growth, as recognized by its continued partnership with NASA.
Intuitive Machines has been awarded a $116.9 million contract by NASA to deliver six scientific and technological payloads to the Moon's South Pole. This marks the fourth such award for the company under the Commercial Lunar Payload Services initiative.
In financial news, the company reported a substantial increase in its Q2 2024 revenue, reaching $41.4 million, more than double compared to the same quarter in 2023.
This pushed the company's first-half revenue to $114.5 million, surpassing its total revenue for the entire year of 2023. Consequently, Intuitive Machines has adjusted its full-year revenue forecast upwards to a range of $210 million to $240 million. Canaccord Genuity has maintained a Buy rating on shares of Intuitive Machines, emphasizing its strong backlog opportunities and expectations for top-line growth.
The company has also booked nearly $70 million in new backlog, with a current contracted backlog of $213 million.
InvestingPro Insights
Following the positive news of Intuitive Machines Inc. (NASDAQ:LUNR) securing their fourth NASA CLPS contract and the subsequent price target increase by Roth/MKM, InvestingPro data provides a deeper look into the company's financial health and market performance. With a market capitalization of $619.62 million and a significant revenue growth of 86.74% over the last twelve months as of Q2 2024, Intuitive Machines showcases a robust expansion in its operational scale. Despite this growth, the company faces challenges, as evidenced by a negative gross profit margin of -9.58% and an operating income margin of -39.11% for the same period. The stock's price volatility is also noteworthy, with a one-week price total return of -8.02%, contrasting with a strong one-month price total return of 24.87%.
InvestingPro Tips further inform potential investors that while analysts expect sales growth in the current year, there is anticipation of a decline in net income. Additionally, the company is not expected to be profitable this year, highlighting the importance of long-term strategic planning for those interested in LUNR's stock. For those seeking more comprehensive analysis, InvestingPro offers additional insights and tips on Intuitive Machines, which can be found at: https://www.investing.com/pro/LUNR.
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