Intuitive Machines’ Price Target (LUNR) Cut as BofA Continues Bearish

Intuitive Machines' stock (NASDAQ: LUNR) is trading down 0.7% into the open, as LUNR saw BofA Securities lower its price target, maintaining a bearish Underperform rating. The downward revision reflects concerns over the company's financial performance, mission delays, and strategic direction, impacting market sentiment.

LUNR has shed 30% of market cap over the past month of trading, and sits 53.6% lower than where the stock began 2025. Zooming out to the 1 year however gives a completely different picture, with LUNR holding on to gains of 70% on the period.

The latest price target adjustment saw BofA cut it's PT from $10.50 to $8.50 per share. This decision follows Intuitive Machines' Q2 2025 results, which revealed a revenue miss and earnings shortfall, prompting a pre-market stock price decline of 4.76%.

Intuitive Machines' Q2 2025 revenue reached $50.3 million, a 21% year-over-year increase, but fell short of the $67.07 million expected by analysts. The company reported an EPS of -$0.045, also missing the forecasted $0.01. These figures underscore the challenges the company faces in meeting market expectations, especially given its ambitious space exploration endeavors.

Operational challenges further compound the financial concerns. The IM-2 mission concluded prematurely due to a landing anomaly caused by an altimeter failure. Additionally, the IM-3 lander mission has been delayed to the second half of 2026, pushing back anticipated revenue streams and creating uncertainty around project timelines. According to BofA, the IM-3 lander mission delay, which is now set to launch in the second half of 2026 instead of the first half, notes risks to revenue visibility and calls the company's civil space orientation “less desirable.”

Despite these setbacks, Intuitive Machines holds a strong financial position with $345 million in cash and no debt as of Q2 2025. The company projects full-year 2025 revenue to be near the low end of its prior outlook, with potential opportunities to reach the midpoint of $275 million. Positive adjusted EBITDA is anticipated in 2026, suggesting a path to profitability despite current challenges.

Intuitive Machines is actively pursuing strategic initiatives to strengthen its position in the a space industry. The acquisition of KinetX, a specialist in deep space navigation, aims to enhance the company's satellite management and data transmission capabilities for future missions. This move is intended to support growth in both Earth orbit and deep space operations.

The market's reaction to recent events reflects a cautious outlook on Intuitive Machines. While the company demonstrates revenue growth and strategic expansion efforts, the operational challenges and financial performance shortfalls have dampened investor enthusiasm. The BofA downgrade further solidifies this sentiment, highlighting concerns about limited customer base and mission array.

Analysts are closely watching Intuitive Machines' ability to address its operational issues, execute its strategic initiatives, and improve its financial performance. The company's future trajectory and stock performance hinge on successfully navigating these challenges and demonstrating its ability to meet ambitious goals in the competitive space exploration market. The stock's performance will likely remain sensitive to news regarding mission progress and financial results in the coming quarters.