Barclays analyst Eddie Kim maintains $Liberty Energy (LBRT.US)$ with a buy rating, and maintains the target price at $21.
According to TipRanks data, the analyst has a success rate of 43.4% and a total average return of 2.8% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Liberty Energy (LBRT.US)$'s main analysts recently are as follows:
Liberty Energy experienced a challenging quarter with a 5% miss in Q3 EBITDA and provided guidance for Q4 that was 25% lower than the consensus. This has resulted in management losing some credibility with investors.
The downturn in the industry seems to be gaining momentum, with Liberty Energy idling two fleets, while margin compression is occurring due to pricing concessions. Seasonal improvements are anticipated in the first half of 2025, yet exploration and production companies are expected to continue seeking price reductions amid oil price uncertainties. With EBITDA declining at a quicker pace than capital expenditures, the forecast for Liberty's 2025 free cash flow is reduced, suggesting a modest yield at the present stock price. Additionally, with the onset of seasonal working capital challenges in the first quarter, Liberty's near-term share repurchase potential seems constrained without leaning on the balance sheet.
Liberty Energy's recent report showed EBITDA figures below expectations, indicating a dimmer projection for frac activity and pricing towards the close of 2024. Despite a less optimistic view due to a subdued outlook for the latter half and a scaled-down free cash flow profile, the anticipation of a forthcoming update on Liberty Power Innovations in early 2025 could serve as a significant catalyst for the stock.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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