UPDATE: Intuitive Machines (LUNR) stock is making headlines as it defies expectations and surges, even after a significant downgrade from Bank of America. Just yesterday, analyst Ronald Epstein slashed his price target from $16 to $10.50, issuing an “underperform” rating. Yet, against all odds, Intuitive Machines stock rose by 1.2% immediately following the announcement and has continued to climb today.
As of 10:40 a.m. ET, Intuitive Machines shares spiked an additional 5.1%, surprising many investors. This upward trend raises critical questions about the resilience of this small lunar exploration company, which made history last year by landing a U.S. spacecraft on the moon for the first time in over 50 years.
Why is Intuitive Machines stock performing well despite the downgrade? Analysts attributed part of the stock’s success to a surprising report of positive free cash flow in Q1 2025, where the company generated $13.3 million. However, Epstein cautioned that this may be an anomaly, warning investors of potential “cash receipt lumpiness” in the upcoming quarter, which could lead to negative free cash flow.
“Investors will still need patience with this stock,” Epstein noted in a statement covered by The Fly.
Market analysts have consistently indicated that Intuitive Machines may not achieve sustained profitability until at least 2027, with reliable positive free cash flow expected around 2028. The sharp rise in stock price may be a temporary win for investors, but it does not reflect long-term financial stability.
Despite these challenges, there remains a silver lining. The company is backed by a series of lucrative contracts with NASA aimed at facilitating lunar landings, in addition to a new partnership for building Earth reentry vehicles catering to semiconductor and space pharmaceutical industries. Such contracts could position Intuitive Machines for significant growth in the coming years.
For investors, the question remains: Should you buy Intuitive Machines stock now? While the current momentum is promising, caution is advised. The potential for substantial gains exists, but it may be a bumpy ride ahead.
As developments unfold, investors will be watching closely for updates from Intuitive Machines and key market analyses. The stock’s surprising resilience could signal exciting opportunities or serve as a warning to those considering an investment. Stay tuned for more updates on this evolving story.
