The privatization of space represents almost unlimited possibilities for the imagination. It also represents untold billions or even trillions of dollars opportunities for investors banking on the future of space.
Intuitive Machines, Inc. (NASDAQ: LUNR) is one such company that has been a beneficiary of the privatization of the space race. And now, its IM-2 mission lunar lander named Athena has sent its shares plunging lower after missing its landing spot and toppling over.
At one point before Friday’s opening bell, the stock was down 37% at $7.05. Rather than hitting the panic button, Wall Street has already come to its defense.
According to the press release, the Athena craft landed 250 meters away from its intended landing site in the Mons Mouton region of the lunar south pole, inside of a crater. The craft is now on its side. The company does not expect Athena to be able to recharge, but not all is lost ere. The company did say:
After landing, mission controllers were able to accelerate several program and payload milestones, including NASA’s PRIME-1 suite, before the lander’s batteries depleted.
After opening down at $7.25, after closing at $11.26 the prior day, shares of Intuitive Machines had recovered to $8.90 after about 90 minutes of trading on Friday with about 33 million shares having already traded.
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Oggonomics has tracked three analyst reports out defending this stock. If the analysts are right, Intuitive Machines could still see the stock more than double. Keep in mind that this stock’s 52-week trading range is $3.15 to $24.95.
Canaccord Genuity did maintain its Buy rating, although the price target was adjusted down to $22 from $26 in the call. The firm believes that this sharp selloff is overdone as an overreaction to the news. The report also points out that Intuitive Machines already has two more missions under contract with NASA.
Roth MKM was the other form defending Intuitive Machines. The firm reiterated its Buy rating and kept its $20 price target in place. The report addresses the challenges faced in both the company’s missions. While it is still waiting to see what portion of the planned lunar mission objectives can still be accomplished, Roth MKM is still excited about this being one of the earliest companies with these lunar landing capabilities.
Another brief note was seen from Benchmark, maintaining its Buy and $16 price target. The firm believes that these mishaps are part of the game and that company will try again.
Intuitive Machines also has warrants traded as Intuitive Machines, Inc. (NASDAQ: LUNRW). This was down 94% at $0.155 after having closed at $2.62 the prior day.
Oggonomics always reminds its readers that no single analyst report should ever be used as the sole basis to buy or sell a stock. After all, analysts can be wrong and fundamentals of each company (or the market in general) can change at any time.
Oggonomics does not maintain any formal rating nor does it have any price target for Intuitive Machines.
