Intuitive Machines, Inc. (LUNR) shares are trading higher Monday after analyst Greg Pendy at Clear Street maintained a Buy rating and boosted the price target from $17 to $25.

What's Driving the Upgrade?

Clear Street pointed to Intuitive Machines' planned acquisition of Lanteris Space Systems and an improved long-term revenue outlook as key reasons behind its updated valuation, according to Investing.com.

The Lanteris deal, expected to close by the second quarter of 2026, is projected to be accretive to both revenue and adjusted EBITDA. Clear Street noted that Intuitive Machines holds more cash than debt on its balance sheet and reported a current ratio of 6.28, suggesting solid financial footing.

The firm believes the transaction positions Intuitive Machines as a "next-generation space prime" with exposure to multi-billion-dollar space programs, aligning with increased U.S. focus on lunar exploration. Clear Street highlighted several potential catalysts heading into 2026, including the Lunar Terrain Vehicle contract announcement, the CLPS IM-5 contract announcement, and higher-margin prime contract opportunities tied to Lanteris.

Clear Street applied an approximately 6x multiple to its projected combined 2027 revenue estimate of $1.045 billion for Intuitive Machines and Lanteris, a significant jump from a prior estimate of $452 million, while factoring in expected dilution from the acquisition.

Recent Financial Performance

In its most recent results, Intuitive Machines reported third-quarter revenue of $52.4 million and a net loss of $10 million. The company posted an adjusted EBITDA loss of $13.2 million, representing an improvement of $12.2 million from the prior quarter.

Price Action: At the time of writing, Intuitive Machines stock is trading 1.38% higher at $15.46.