
Intuitive Machines (LUNR) shares were in focus on Wednesday after B. Riley lowered its price target on the stock ahead of the company's third-quarter results.
According to The Fly, analyst Mike Crawford cut the price target to $34 from $43 while maintaining a ‘Buy’ rating. The firm cited compression in comparable multiples but expects Intuitive Machines to report backlog expansion.
Crawford sees a disconnect between the company’s growing backlog and its shrinking valuation, The Fly reported.
LUNR shares traded 3.7% lower at the time of writing. The stock has dropped over 12% in the past week.
B. Riley lowered the valuation multiple it applies to Intuitive Machines’ fiscal 2027 projections to 7 times enterprise value-to-sales from 9 times, citing sector-wide multiple compression, according to a report published by Investing.com.
The firm expects Q3 fiscal 2026 revenue of $252 million, above the $246 million consensus estimate, but forecasts earnings before interest, taxes, depreciation, and amortization (EBITDA) of $2.2 million, below the $4.1 million consensus estimate, according to an Investing.com report.
The report also noted that B. Riley expects bookings to be a key metric during the quarter and projects that the book-to-bill ratio could exceed 1.2 times if several contracts are finalized before Sept. 30.
On Monday, KeyBanc lowered its price target on Intuitive Machines to $30 from $38 while maintaining an ‘Overweight’ rating, citing broader compression in valuation multiples across its Space & Defense Tech coverage, according to The Fly.
The firm said its estimates were largely unchanged and that longer-term macroeconomic and company-specific growth drivers remained intact. However, it pointed to budget uncertainty, the midterm election overhang and rising interest rates as factors behind the target reductions, The Fly reported.
Nine out of 10 analysts covering the stock rate it ‘Buy’, while one rates it ‘Strong Sell’. Their 12-month price target ranges from $13 to $43, with an average of $29.
The company also secured another NASA contract on Tuesday to provide its IM-300 spacecraft platform and system integration for the Falcon-Radar satellite. The mission is scheduled to launch no earlier than 2029.
The company is scheduled to report its Q3 results on November 12, with analysts expecting revenue of $247.54 million and a loss of $0.12 per share, according to Fiscal.ai.
Despite the gains, retail sentiment for LUNR on Stocktwits turned ‘neutral’ from ‘bearish’ over the past 24 hours.
LUNR shares have dropped over 35% year-to-date.
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