By James Rogers
Intuitive Machines' Athena moon landing may have suffered the same fate as its Odysseus lander last year and toppled over on the lunar surface
Intuitive Machines Inc.'s stock was down more than 36% premarket after the company said its Athena moon lander may have toppled over on the lunar surface - the same fate as its Odysseus lander last year.
Athena touched down on the lunar surface at approximately 12:30 p.m. Eastern time Thursday after a seven-day journey to the moon. But it soon became clear that Athena had run into difficulties.
Intuitive Machines said in a press conference Thursday that it is able to communicate with Athena, despite its uncertain orientation.
The stock is on pace for its biggest daily percentage decline since Feb. 23, 2023, when it fell 75.24%, according to Dow Jones Market Data. But despite the bad news, one analyst was not buying into the panic.
"We view the move in LUNR stock as an overreaction given LUNR's backlog, and the context that space can often be an iteration process," Benchmark analyst Josh Sullivan wrote in a note released Friday. Sullivan noted that Intuitive Machines already has won the NASA IM-3 mission, which is scheduled to return to the moon next year and has "the very large" Near Space Network multibillion satellite telecom relay contract. Benchmark has a buy rating and a $16 price target for Intuitive Machines.
Related: Intuitive Machines' second moon lander has run into problems. The stock is sliding.
Last year Intuitive Machines' (LUNR) Odysseus lander made history when it became the first commercial lander to successfully touch down on the moon's surface, but fell onto its side. Odysseus was able to communicate with flight controllers after landing. The mission ended seven days after the lander reached the moon.
Athena is carrying NASA's Polar Resources Ice Mining Experiment-1 (PRIME-1), which includes a drill and a mass spectrometer to measure the presence of volatile substances or gases in the lunar soil. A NASA laser retroreflector array on the lander's top deck is also intended to bounce laser light back to future orbiting or incoming spacecraft. Additionally, Athena is carrying Intuitive Machines' NASA-funded Micro Nova Hopper, an autonomous drone for surveying the lunar surface. The lander is also transporting eight commercial payloads, including Nokia Corp.'s (NOK) Lunar Surface Communications System.
Related: Intuitive Machines' stock climbs as second moon-landing mission launches
"Management has confirmed that the Athena lander has touched down on the moon and is being responsive," Cantor Fitzgerald analyst Andres Sheppard, wrote in a note released Thursday. "However, the orientation of the lander remains unclear at this time. We await further information, particularly whether the PRIME drill will be able to be successfully deployed and whether the Micro Nova Hopper can be utilized."
Cantor Fitzgerald reiterated its overweight rating and $15 price target for Intuitive Machines "pending a full model update."
Related: These are the space stocks to watch in 2025
Like last year's IM-1 mission, this year's IM-2 mission is part of NASA's Commercial Lunar Payload Services (CLPS) initiative to deliver science and technology to the moon's surface.
Related: Trump's space ambitions ignite a rally in these stocks - an analyst sees more gains ahead
Related: Buy this space stock, as it's a 'pillar of long-term lunar infrastructure'
Intuitive Machines, which went public through a merger with special-purpose acquisition company Inflection Point Acquisition in 2023, has been cited as a space stock to watch in 2025. The Houston-based company has clinched a number of major deals and in December won additional contracts from NASA's Near Space Network. In January, Intuitive Machines was awarded a NASA study contract to advance lunar logistics handling and unloading, as well as surface cargo and mobility.
Intuitive Machines' stock has risen 89.2% in the last 12 months.
-James Rogers
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