Intuitive Machines Inc

Intuitive Machines, Inc. (NASDAQ: LUNR) is a diversified space company focused on space exploration. It is a provider and supplier of space products and services that enable sustained robotic and human exploration to the Moon, Mars, and beyond. Its products and services are offered through its four business units: Lunar Access Services, Orbital Services, Lunar Data Services and Space Products and Infrastructure.

Recent Business and Financial Updates

• Historic Lunar Mission: On February 22, 2024, LUNR successfully delivered NASA and commercial payloads to the Moon, landing further south than any vehicle in history. This achievement marked the United States' first lunar landing in over 50 years and highlighted LUNR's advanced capabilities in lunar exploration, reinforcing its leadership in space missions.
• Record Financial Performance: LUNR achieved record revenues of USD 73.1 million for the quarter, representing an increase of over 300% compared to the previous year. This remarkable growth was driven by the success of the IM-1 mission and milestone payments from NASA and commercial customers. Additionally, the gross margin saw positive momentum, reaching USD 12.2 million for the quarter, underscoring the financial benefits of the mission successes.
• Effective Cash Management: A disciplined approach to cash management resulted in USD 6.4 million used from operations during the quarter, a notable reduction of USD 12.2 million compared to the prior year. The quarter ended with a robust cash balance of USD 55.2 million, the highest quarter-end balance since LUNR's inception, ensuring strong financial health and operational funding.
• Major Contract Awards: LUNR was awarded a USD 30 million contract for NASA’s Lunar Terrain Vehicle (LTV) to support the Artemis Campaign, establishing itself as a prime contractor within NASA’s USD 4.6 billion LTV Services project. This contract highlights LUNR's crucial role in upcoming lunar exploration efforts and reinforces its strategic growth trajectory.
• 2024 Outlook and Financial Highlights: Looking forward, LUNR projects full-year 2024 revenue between USD 200 million and USD 240 million, indicating substantial growth over the previous year. The first quarter of 2024 saw revenue of USD 73.1 million, a 301% year-over-year increase driven by key contracts such as OMES III and NASA’s CLPS initiative. Despite an operating loss of USD 5.4 million, improved from USD 14.0 million the prior year, the strong cash position and a contracted backlog of USD 222.4 million provide a solid foundation for future growth. Anticipated expansion includes key upcoming awards and the planned IM-2 mission to the Moon’s south pole later this year.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands at a value of 60.32, recovering from oversold zone and currently near overbought zone, with expectations of further continuation of upward momentum or some consolidation. Additionally, the stock's current positioning is between both the 50-period SMA and 200-period EMA, which may serve as dynamic short to medium-term support and resistance levels respectively.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Speculative Buy’ rating has been given to Intuitive Machines, Inc. (NASDAQ: LUNR) at the current market price of USD 4.42 as of July 16, 2024, at 07:10 am PDT. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is July 16, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.