Stifel upgrades Intuitive Machines to 'Buy' on backlog growth

Stifel has upgraded Intuitive Machines Inc. to a 'Buy' rating, citing a surge in the company’s backlog despite a second-quarter earnings miss.

The brokerage firm raised its rating on the lunar lander and space technology provider from 'Hold' to 'Buy', reflecting confidence in the company’s long-term growth prospects. Stifel’s upgrade follows a reported increase in Intuitive Machines’ backlog, which the analyst described as a key driver of future revenue potential.

Intuitive Machines reported a second-quarter loss earlier this month, missing analyst expectations. Revenue also fell short of estimates, though the company emphasized progress in its contract backlog, including NASA’s Commercial Lunar Payload Services (CLPS) initiative.

Stifel’s upgrade underscores a shift in sentiment toward the company’s ability to secure and fulfill long-term contracts, even amid near-term financial challenges. The analyst did not provide a specific price target in the note.

Shares of Intuitive Machines have fluctuated in recent weeks, reflecting broader volatility in the space technology sector. The company remains focused on expanding its lunar lander fleet and other space-related services, positioning itself for long-term growth in the commercial space industry.