Intuitive Machines (LUNR) is giving back some of Tuesday's gains as space-related stocks take a collective breather following Monday's enthusiastic rally. It's the classic market pattern: big news, big surge, then everyone takes a step back to catch their breath.
What's Behind the Pullback?
The recent excitement kicked off when President Donald Trump signed his "Ensuring American Space Superiority" executive order, which basically rewrites how America approaches space exploration. The order shifts toward a commercial-first model, setting some ambitious targets: get back to the Moon by 2028, establish a permanent lunar base by 2030, and attract $50 billion in private investment along the way.
Here's the part that matters for investors: the directive prioritizes commercial contracts over the traditional "cost-plus" government deals that have dominated space work for decades. That's a significant shift that's generally viewed as favorable for publicly traded space companies, which can now compete for business without being squeezed out by legacy contractors.
Even with Tuesday's dip, the space sector has been heating up heading into 2026. Much of that momentum comes from growing chatter about a potential SpaceX IPO. Andrew Chanin, CEO of Procure Holdings (UFO), noted that investors are hunting for undervalued names in the space industry, and a SpaceX debut could provide a rising tide that lifts all boats.
What Analysts Think About LUNR
Intuitive Machines has been drawing increased analyst attention, and the consensus leans positive. B. Riley Securities recently maintained its Buy rating and cranked up its price target to $20.00 from $14.00. Keybanc jumped in with an Overweight rating and matching $20.00 target when it initiated coverage.
Not everyone's on board, though. BofA Securities continues rating LUNR as Underperform, though they did nudge their target up slightly from $8.50 to $9.50. Canaccord Genuity kept its Buy rating but trimmed its target to $15.50 from $18.50, while Stifel initiated coverage with a Buy rating and $18.00 target.
Intuitive Machines shares were down 4.43% at $15.95 at the time of publication Tuesday, according to market data.