Intuitive Machines (LUNR) Jumps 11% as Analyst Firms up 'Buy' Reco

We recently published Wall Street Can’t Keep Up: 10 Big Names on a High. Intuitive Machines Inc. (NASDAQ:LUNR) was one of the best performers on Thursday.

Intuitive Machines rebounded by 11.20 percent on Thursday to finish at $17.67 apiece, after an investment firm reiterated an optimistic coverage for the stock.

In a market report, B. Riley reaffirmed its “buy” recommendation and $25 price target, marking a 41 percent upside potential from its latest closing price.

This followed the listed firm’s ongoing $175 million share sale, as it aims to raise funds to support revenue expansion and investment in technologies to advance communications and data processing networks, including extending flight-proven satellite platforms into those growth markets. The transaction is expected to close tomorrow, February 27.

Additionally, Intuitive Machines Inc. (NASDAQ:LUNR) intends to invest in expanding its Near Space Network Services (NSNS) and establish a solar system internet independent of Earth.

“Through investments in the Lanteris platforms, specifically the 1300 series, the company believes it can grow market share in Geostationary Orbit, expand capability around the Moon, extend capability to Mars, and support emerging high-power on-orbit data processing and edge computing,” it said.

“The company believes this investment will enhance its ability to win and execute higher margin, recurring revenue programs such as Golden Dome initiatives, Tracking and Data Relay Satellite System, the Mars Telecommunications Orbiter, as well as the evolving space-based orbital data center market,” it noted.

While we acknowledge the potential of LUNR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. Follow Insider Monkey on Google News.