On Oct 21, major Wall Street analysts update their ratings for $Liberty Energy (LBRT.US)$, with price targets ranging from $18 to $21.
BofA Securities analyst Saurabh Pant maintains with a hold rating, and adjusts the target price from $21.5 to $18.
Citi analyst Scott Gruber maintains with a hold rating, and maintains the target price at $19.
Barclays analyst Eddie Kim maintains with a buy rating, and maintains the target price at $21.
Seaport Global analyst Tom Curran maintains with a hold rating.
Furthermore, according to the comprehensive report, the opinions of $Liberty Energy (LBRT.US)$'s main analysts recently are as follows:
Pricing challenges in the frac sector have extended to top-tier pumpers and equipment, which is reflected in Liberty Energy's recognition of 'slowing activity pressuring pricing inconsistent with [its] anticipated future demand.' It is anticipated that Liberty's realized pricing may face further weakening prior to an improvement.
Liberty Energy experienced a challenging quarter, missing Q3 EBITDA expectations by 5% and forecasting Q4 results that are 25% below the consensus. This has resulted in management losing some credibility with investors.
The intensification of the downcycle is evidenced by Liberty Energy idling two fleets and experiencing margin compression due to pricing concessions. Seasonal improvements are anticipated in the first half of 2025, although exploration and production companies are expected to persist in seeking pricing concessions amidst oil price uncertainties. A more rapid decline in EBITDA compared to capital expenditures has led to a reduced free cash flow estimate for Liberty in 2025, which suggests a modest yield at the present stock price. Furthermore, with the first quarter facing seasonal working capital challenges, the company's capacity to repurchase shares may be constrained in the near term without resorting to leveraging its balance sheet.
Liberty Energy's reported EBITDA fell short of expectations, indicating a subdued forecast for frac activity and pricing towards the end of 2024. Despite a less optimistic view on the company's second half outlook and its lowered free cash flow profile, the anticipated update on Liberty Power Innovations in early 2025 is seen as a potential catalyst for the company's stock.
Liberty Energy's Q4 guidance and comments indicating price headwinds were described as 'lackluster.' Nonetheless, expectations are set for enhanced performance in the first half of 2025 after a seasonal decrease in Q4.
Here are the latest investment ratings and price targets for $Liberty Energy (LBRT.US)$ from 4 analysts:
Note:
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