Intuitive Machines is an undervalued stock, Roth says

Following the company’s fourth quarter results, Roth analyst Suji Desilva has maintained his “Buy” rating on Intuitive Machines (Intuitive Machines Stock Quote, Chart, News, Analysts, Financials NASDAQ:LUNR).

On March 24, LUNR reported its Q4 and fiscal 2024 results. In the fourth quarter, the company posted an EPS loss of $0.06 on revenue of $54.7-million, a topline that was up 79%, year-over-year.

“Just two years ago, we became a public company with a bold vision for the future,” CEO Steve Altemus said. “Over the past year, we’ve deliberately positioned ourselves for long-term success by expanding our technical capabilities, opening new revenue streams, and fortifying our financial position. Today, we stand stronger than ever— financially secure, debt-free, and ready to take the next leap. Now, with a fortress-like balance sheet, we’re seeking the highest-return opportunities, whether that’s through internal innovation or strategic acquisitions. Our proven technologies and expertise are propelling us beyond NASA and cislunar space, expanding our reach into new markets and customers. This year is not just about growth—it’s about defining the future of our company and the industry itself.”

Desilva says he is encouraged by the company’s progress.

“LUNR reported 4Q24 revenue roughly in-line with consensus and guided FY25 ahead of ROTH forecast expectations with significant backlog coverage supporting the growth expectation<" he wrote. "We are encouraged that LUNR is tracking toward EBITDA breakeven exiting CY25 and has strong incremental pipeline program opportunities. We expect LUNR to leverage its strong competencies built from lunar missions to expand its addressable market beyond domestic civil space." In a research update to clients March 24, the analyst reiterated his "Buy" rating and price target of $12.00 on LUNR. Desilva thinks LUNR will post an EPS loss of $0.06 on revenue of $275.0-million in fiscal 2025. He expects those numbers will improve to EPS of $0.06 on revenue of $330.0-million in fiscal 2026.