On Oct 22, major Wall Street analysts update their ratings for $Liberty Energy (LBRT.US)$, with price targets ranging from $18 to $21.
Morgan Stanley analyst Daniel Kutz maintains with a hold rating, and adjusts the target price from $22 to $20.
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 pressure in the frac sector has extended to top-tier pumpers and equipment, illustrated by Liberty Energy's recognition of 'slowing activity pressuring pricing inconsistent with expected future demand.' It is anticipated that the realized pricing for Liberty may continue to deteriorate before witnessing an improvement.
The company's Q3 EBITDA fell short by 5% and provided guidance for Q4 that was 25% below the consensus. It was recognized as a challenging quarter for Liberty, during which the management may have experienced a decline in investor credibility.
The intensification of the downcycle is evident as Liberty Energy is idling two fleets and experiencing margin compression due to pricing concessions. Seasonal improvements are anticipated in the first half of 2025, yet there is an expectation that exploration and production companies will persist in seeking pricing concessions amidst uncertainties in oil prices. A more rapid decline in EBITDA relative to capital expenditures has led to a reduction in the estimated 2025 free cash flow for Liberty, resulting in a modest yield percentage based on the current share price. Furthermore, the company may face constraints in its buyback capacity in the near term due to seasonal working capital challenges, without resorting to the balance sheet for support.
Liberty Energy's recent financial figures have shown an EBITDA below anticipated levels, suggesting a subdued outlook for frac activity and pricing extending into the end of 2024. Despite a less optimistic view on the stock due to the forecast for the second half and a diminished free cash flow outlook, the anticipation of an update from Liberty Power Innovations in early 2025 is seen as a potential significant event for the company's stock.
Liberty Energy's fourth-quarter guidance was characterized as 'lackluster', with the company facing price headwinds. Despite this, there is an anticipation of improved results in the first half of 2025 following a seasonal lull.
Here are the latest investment ratings and price targets for $Liberty Energy (LBRT.US)$ from 5 analysts:
Note:
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