Consideringthe Current Price Drop, Is It Wise to Acquire Intuitive Machines Below $22?
Space exploration has seen a significant transformation since the first satellites were launched in the late '50s, shifting from government control to the private sector. Companies like SpaceX and Blue Origin have taken the lead, making space travel more affordable and accessible. One of the trailblazers in this new frontier is Intuitive Machines, or LUNR (-1.02%).
In 2021, Intuitive Machines made headlines with its first successful lunar mission, soft-landing its Nova-C lunar lander, Odysseus, on the Moon. This achievement, the first lunar landing of an American-made spacecraft since 1972 and the first commercial spacecraft to do so, paved the way for future research opportunities.
The company's successful mission attracted NASA's attention and led to a $30 million deal as a prime contractor to develop a lunar terrain vehicle. NASA wasn't done, though. In August, the space agency awarded Intuitive Machines a $116.9 million contract to deliver six science and technology payloads to the Moon's south pole. To top it all off, in September, Intuitive Machines secured a Near Space Network (NSN) contract with a potential value of $4.82 billion over the next 10 years.
Looking ahead, Intuitive Machines is preparing for its upcoming IM-2 mission, set to launch in the first quarter of 2025, targeting a Feb. 27 liftoff. This mission aims to demonstrate on-site resource utilization on the lunar surface by employing a drill and mass spectrometer to analyze the volatile content in subsurface materials. The mission will focus on measuring lunar water ice and testing for hydrogen presence in permanently shadowed regions, providing crucial insights into lunar water resources.
Intuitive Machines' progress and contract awards from NASA sock a big deal, validating its technology and emphasizing NASA's satisfaction with the company's progress. Furthermore, the company boasts a substantial backlog of $316.2 million, representing future awarded contracts' anticipated revenue, highlighting strong demand for its services.
Investing in Intuitive Machines comes with increased risk, but analysts project annual revenue growth of 61% in 2025 and earnings per share improvement from negative $2.27 to negative $0.12. The company anticipates profitability by 2026. Given its promising trajectory, expaning contract base, and impact on the rapidly growing space economy, Intuitive Machines is an appealing stock for growth-focused investors with a long-term investment horizon.
After analyzing the company's performance and future prospects, some financial institutions are considering investing in Intuitive Machines. This strategic move could yield substantial returns, considering the projected annual revenue growth of 61% in 2025.
To manage such growth, Intuitive Machines is planning to allocate its financial resources wisely in areas like developing innovative technologies for lunar resource utilization. This strategy, combined with the company's aim for profitability by 2026, makes investing in their stocks an attractive option for those interested in long-term finance opportunities in the space industry.
