Deutsche Bank has upgraded its rating on Intuitive Machines Inc (NASDAQ:LUNR) from Hold to Buy, citing what it called an attractive risk-reward outlook for the next three to six months.
Analysts said the firm views Intuitive Machines as a "secular winner" in the space exploration sector, with a role in helping the US and its allies prepare the Moon for a human return mission, ahead of China.
Deutsche Bank noted that the stock has lagged other "new space" peers, such as Rocket Lab and Firefly, since its IM-2 mission in February, and sees potential for the valuation gap to narrow if the company secures key contracts, including the next NASA Commercial Lunar Payload Services (CLPS) mission and Lunar Terrain Vehicle System (LTVS) awards.
Intuitive Machines also holds a cash position of more than $600 million, which Deutsche Bank said could be deployed for acquisitions that add value.
The bank raised its price target to $18 from $12, reflecting a higher 6x 2030 estimated EV/Revenue multiple, up from the prior 4x, to account for a sector-wide re-rating.
Shares of Intuitive Machines jumped at Monday’s open before settling around 3.6% higher at $12.84 in midday trading.