This little lunar exploration firm nonetheless has a vibrant future.
Intuitive Machines‘ (LUNR -6.11%) inventory has greater than doubled over the previous 12 months. The producer of lunar touchdown and exploration autos impressed traders after it achieved its first lunar touchdown, secured new NASA contracts, and expanded its ride-sharing service to ship extra third-party payloads to the moon. However might it soar even increased over the following 12 months?
What occurred to Intuitive Machines over the previous two years?
Intuitive Machines went public by merging with a particular goal acquisition firm (SPAC) two years in the past, and the mixed firm’s inventory began buying and selling at $10 on its first day and skyrocketed to its all-time excessive of $81.99 per week later.
Picture supply: Intuitive Machines.
On the time, it impressed traders with its three main contracts with NASA, its plans to launch its Nova-C lunar lander, and its daring income forecasts. However after its public debut, it postponed the Nova-C’s launch and secured fewer contracts. Rising rates of interest additionally drove traders away from speculative SPAC-backed corporations. By Jan. 4, 2024, its inventory had dropped to an all-time low of $2.11. Nevertheless, a $1,000 funding in its inventory on that fateful day could be value practically $9,000 at present.
Intuitive’s inventory surged after it lastly landed its first Nova-C lander, named Odysseus, on the moon on Feb. 22, 2024. That marked the primary profitable U.S. moon touchdown since 1972, and it drove NASA to award the Intuitive with 4 new contracts — a lunar terrain car contract, a business lunar payload companies (CLPS) contract, an unique near-space community contract, and a lunar logistics options contract — over the next yr. Consequently, Intuitive’s quarterly backlog hit a document excessive of $316 million within the third quarter of 2024, and it expects its annual income to surge from $80 million in 2023 to a spread of $215 million to $235 million in 2024. Analysts anticipate its income to climb 188% to $229 million for the yr.
What are Intuitive Machines’ near-term catalysts?
On Jan. 28, Intuitive Machines delivered Athena, its second lunar lander, to Cape Canaveral, Florida, as a part of its CLPS contract wtih NASA. It is presently concentrating on a “four-day launch window that opens no sooner than Feb. 26” for the lander, and a profitable launch might drive Intuitive’s inventory even increased over the following few months.
Intuitive’s partnership with Columbia Sportswear, which is utilizing its Omni-Shade and Omni-Warmth Infinity materials to defend the Athena’s very important programs, may also entice some extra consideration from different consumer-facing corporations that need to generate related publicity for his or her manufacturers. These business partnerships might cut back its general prices.
As Intuitive expands, it might safe extra contracts from NASA, different house companies, and business clients for its ride-sharing enterprise. Assuming these tailwinds kick in, analysts anticipate its income to rise 57% to $360 million in 2025 as its adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) flip constructive.
With an enterprise worth of $1.8 billion, Intuitive nonetheless appears to be like fairly valued at 5 occasions this yr’s gross sales. It is greater than doubled its share depend over the previous yr, however that dilution is not too stunning as a result of it must maintain elevating contemporary money with secondary choices whereas protecting its stock-based compensation and up to date warrant redemptions.
On the finish of its newest quarter, Intuitive held practically $90 million in money and equivalents with zero debt. In the course of the follow-up convention name, CEO Stephen Altemus mentioned it nonetheless had “ample liquidity” for its “blueprint to commercialize the moon.”
The place will Intuitive Machines’ inventory be in a yr?
Intuitive Machines continues to be a speculative inventory, however it ought to head increased over the following 12 months if Athena lands and it positive factors extra contracts. Declining rates of interest might additionally drive extra traders again towards this high-growth house inventory.
Leo Solar has no place in any of the shares talked about. The Motley Idiot has no place in any of the shares talked about. The Motley Idiot has a disclosure coverage.
