Why Is Intuitive Machines Stock Still Going Up?

It appears there’s an intriguing development with the shares of Intuitive Machines, the minuscule firm that achieved the feat of putting a U.S. spacecraft on the moon for the first time in more than half a century last year.

Yesterday, analyst Ronald Epstein from Bank of America adjusted his projected value for Intuitive Surgical’s shares from $16 to $10.50. This new valuation resulted in an “underperform” rating. Surprisingly, the stock price for Intuitive Machines actually increased by 1.2% upon this announcement.

And today, it’s going up even more.

What BofA says about Intuitive Machines stock

During the hours up until 10:40 a.m. Eastern Time, the share price of Intuitive Machines increased by a robust 5.1%. While this undoubtedly brings joy to investors, they might want to avoid getting too accustomed to such defiance of the typical market trends.

According to Epstein’s note as reported by The Fly, Intuitive stock has performed well this year due to a positive free cash flow announcement in Q1, amounting to $13.3 million. However, it’s worth noting that management cautioned that irregular cash inflows might reappear in Q2.

And I suspect “cash receipt lumpiness” translates as “negative free cash flow.”

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Is Intuitive Machines stock a buy?

This shouldn’t be a surprise.

Experts have predicted for some time that Intuitive might not achieve sustained profitability based on generally accepted accounting principles (GAAP) before 2027 at the earliest. It’s also projected to start consistently producing Free Cash Flow (FCF) by 2028. The strong Q2 2025 results were likely an unusual exception, although a welcome one. Investors should expect patience is needed when it comes to this stock.

In simpler terms, I think good things will come to those who wait. With its ongoing contracts with NASA for moon landings, a communications contract in the near space, and now a new venture creating Earth reentry vehicles for semiconductor and space pharmaceutical companies, Intuitive’s future seems to be reaching for the stars!

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2025-07-18 00:05