Overview
B. Riley raised its price target on Intuitive Machines Inc. (NASDAQ:LUNR) to $25 from $20 and kept a Buy recommendation. The new target equates to roughly a 59% upside relative to LUNR's then-current share price of $15.71. The research house applied a 6x projected EV/sales multiple to its fiscal 2026 revenue estimate, up from the prior 5x multiple.
Analyst rationale
Analyst Mike Crawford at B. Riley noted a more favorable backdrop for space and lunar commercialization as a factor supporting faster growth potential for the company. The firm highlighted that increased lunar activity is likely to create demand for communications, navigation and surface mobility services - capabilities that Intuitive Machines is developing.
Valuation and financial condition
According to InvestingPro data cited in coverage, LUNR currently trades at a high revenue valuation multiple and analysts do not expect the company to be profitable this year. The same source rates the companys overall financial health as WEAK, reflecting an absence of profitability to date. Despite these indicators, the stock has shown notable price momentum, gaining 77.5% over the prior six months.
Product positioning
Intuitive Machines' planned offerings that align with anticipated lunar demand include a data relay satellite constellation under its Near Space Network Services (NSNS) program and a lunar terrain vehicle called Moon RACER. The five planned data relay satellites are intended to sell cislunar communications minutes to NASA and other space agencies or commercial customers. Moon RACER is a contender for Phase 2 of a related program.
Sector context and industry moves
The report referenced public statements and program shifts from other industry players as part of the backdrop for B. Riley's view. One such note cited a February 8 post by Elon Musk stating that SpaceX was prioritizing construction of a self-sustaining city on the Moon over Mars in the near term. Separately, Blue Origin said on January 30 it would pause New Shepard tourist flights for at least two years to focus on developing its Blue Moon lunar lander and other lunar technologies.
Recent corporate developments and analyst responses
Intuitive Machines completed an $800 million acquisition of Lanteris Space Systems, formerly known as Maxar Space Systems, through a transaction composed of $450 million in cash and $350 million in Intuitive Machines Class A common stock. Following that deal, Clear Street raised its price target for Intuitive Machines to $25.00 while maintaining a Buy rating, citing the expected positive effect on revenue and adjusted EBITDA.
Other firms have taken differing stances. Stifel downgraded Intuitive Machines from Buy to Hold, citing concerns related to an upcoming NASA Lunar Terrain Vehicle (LTV) contract decision. Cantor Fitzgerald reiterated an Overweight rating and retained a $16.00 price target, pointing to several potential contract decisions as near-term catalysts. The coverage landscape thus shows a mix of optimism about contract-driven revenue and caution tied to specific procurement outcomes.
Market reaction and broader implications
Market observers have noted the stock's sharp run over the past six months, while third-party analysis suggests the shares may be trading above their Fair Value. The evolving competitive environment and shifting priorities among major industry participants underscore a dynamic period for companies operating in space technology and related services. The report also mentioned a separate, large-scale tie-up in the sector - a merger between SpaceX and xAI valued at $1.25 trillion - as part of the broader industry news flow.
Takeaway
B. Riley's move to raise its multiple and target price for Intuitive Machines reflects an upbeat view on the commercial potential tied to increased lunar activity and the company's product positioning in communications and surface mobility. That view is tempered by the company's current lack of profitability and a weak financial health rating, producing a mixed picture for investors weighing growth opportunity against valuation and execution risk.
Key points
- B. Riley raised its LUNR price target to $25 from $20 and applied a 6x EV/sales multiple to fiscal 2026 estimates.
- Intuitive Machines' NSNS data relay constellation and Moon RACER lunar terrain vehicle are positioned to serve cislunar communications and surface mobility needs.
- Market momentum has been strong for LUNR, but InvestingPro data flags a high revenue multiple and a WEAK financial health score; the company is not yet profitable.
Risks and uncertainties
- Profitability risk - Analysts do not expect Intuitive Machines to be profitable this year, and the companys financial health is rated WEAK; this affects investor returns and balance-sheet resilience.
- Contract and program risk - Outcomes of NASA and other procurement decisions, including the Lunar Terrain Vehicle contract, influenced analyst views and could materially affect near-term revenue prospects.
- Valuation risk - The stock trades at a high revenue multiple and third-party analysis suggests it may be overvalued relative to Fair Value; this could impact returns for market participants in the space technology sector.