Intuitive Machines (LUNR +12.93%) stock soared more than 12% in late morning trading. With just half an hour till markets close, the stock is holding onto this gain.
And you can thank investment bank Cantor Fitzgerald for that.
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Cantor Fitzgerald loves Intuitive Machines stock
Cantor Fitzgerald analyst Andres Sheppard doubled down on his overweight rating and $32 price target on Intuitive Machines stock in a note covered on StreetInsider.com this morning.
The company recently delivered its latest IM-1300 series satellite -- SXM-11 -- to SiriusXM (SIRI +0.48%), says Sheppard. Actually, it was Lanteris that built these satellites -- as it's been doing for Sirius for the past two decades. But Intuitive bought Lanteris early this year in an $800 million transaction first announced last November.
That makes Intuitive Machines Sirius's largest satellite supplier.
NASDAQ: LUNR
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What's next for Intuitive Machines
And not just Sirius's. Going forward, says Sheppard, "we expect LUNR to be better positioned as a Space Prime and to have the ability to design, manufacture, deliver, and operate missions from Earth orbit to the Moon and beyond."
Intuitive recently landed a separate contract to build missile defense satellites for L3Harris (LHX -0.15%) as a subcontractor under that company's contract with the U.S. Space Force, and more similar contracts are in the offing.
With an implied market capitalization of $3.2 billion, according to the latest data from S&P Global Market Intelligence, Intuitive Machines is not yet profitable and continues to burn cash. Analysts anticipate the company might begin generating positive free cash flow next year, however, and with $917 million in revenue expected this year, the stock is once again back in the 2-4x sales range where space stocks begin to look buyable.
It's not yet a screaming buy -- but it's worth a look.
