Intuitive Machines, Inc. (LUNR): A Bull Case Theory

We came across a bullish thesis on Intuitive Machines, Inc. (LUNR) on Deep Value Return’s Substack. In this article, we will summarize the bulls’ thesis on LUNR. Intuitive Machines, Inc. (LUNR)’s share was trading at $10.89 as of 12th June. LUNR’s trailing P/E was 9.2 according to Yahoo Finance.

A satellite in the night sky, glimmering with the promise of aerospace exploration.

Intuitive Machines (LUNR) represents a timely deep value opportunity for investors willing to look past short-term setbacks and focus on long-term inflection points. The company’s recent 70% stock decline following the IM-2 mission failure has reset expectations, but this disappointment is now fully priced in.

What remains is a rapidly growing business, gradually progressing toward positive free cash flow, and offering an attractive entry point. With a forward-looking view, LUNR is poised to grow revenues by 30% annually into 2026 and currently trades at just 5x forward sales—a compelling valuation for a space technology company navigating early execution challenges. The author sees this as an ideal inflection investment: not an immediate turnaround story, but one with visible acceleration ahead and the potential for meaningful upside as the market re-rates the stock.

The author has set a price target of $17 by late 2026, implying significant appreciation from current levels. Their investment strategy calls for a staggered position—2.5% of capital now and another 2.5% in 4 to 6 weeks—anticipating short-term volatility as an opportunity to average down. This approach reflects a broader portfolio philosophy of capturing multiple small wins rather than swinging for singular moonshots, with rapid capital rotation to deliver outperformance in 2025. Potential upcoming exits from positions in Nebius or Snowflake could free up further capital to redeploy into such setups. For now, LUNR offers the right combination of post-disappointment resilience, strong forward growth, and deep value metrics to justify a calculated, conviction-driven entry.

Previously, we highlighted a standout bullish thesis on Rubrik (RBRK) by the same author, which focused on its differentiated cyber resilience platform, early achievement of price targets, and strong FCF margins despite a premium valuation. Deep Value Returns also pitched Intuitive Machines (LUNR), framing it as a deep value play with 30% forward growth, a favorable risk-reward setup post-IM-2 disappointment, and a staggered entry strategy.

Intuitive Machines, Inc. (LUNR) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held LUNR at the end of the first quarter which was 26 in the previous quarter. While we acknowledge the risk and 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: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article was originally published at Insider Monkey.