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Investing.com - Liberty Energy Inc (NYSE:LBRT) shares jumped 28.3% on Friday despite reporting underwhelming third-quarter 2025 results, significantly outperforming the S&P 500’s 0.5% gain.
The stock surge appears driven by management’s optimistic outlook for the company’s power generation business, according to Stifel, which maintained its Buy rating and $19.00 price target on the stock. According to InvestingPro analysis, Liberty Energy trades at a P/E ratio of 13.57 and operates with a moderate debt level, maintaining a healthy current ratio of 1.32.
Liberty Energy now expects to exceed 1 gigawatt of power generation capacity by 2027, an increase from its previous target of 400 megawatts by the end of 2026, signaling accelerated growth in this segment.
The company reported its opportunity pipeline in power generation has more than doubled over the past three months, with potential for contracts extending beyond 15 years on a take-or-pay basis.
While Liberty Energy continues to face headwinds in its U.S. pressure pumping business, Stifel’s maintained price target reflects a sum-of-the-parts analysis that incorporates capital spending for the expanding power generation division.
In other recent news, Liberty Energy reported its third-quarter 2025 earnings, revealing a miss on both earnings per share (EPS) and revenue expectations. The company announced an EPS of -$0.06, which was lower than the anticipated -$0.02, a 200% negative surprise. Revenue also fell short, coming in at $947 million compared to the forecasted $967.05 million. Despite these disappointing figures, Liberty Energy’s stock experienced a notable surge in after-hours trading, indicating investor optimism regarding the company’s future strategies and operational enhancements.
Additionally, RBC Capital adjusted its price target for Liberty Energy, raising it from $13 to $15, while maintaining a Sector Perform rating. This adjustment followed a significant rally in Liberty Energy shares after the earnings report. The revised price target reflects RBC Capital’s assessment of the company’s prospects despite a soft outlook for fracturing services. These developments highlight the mixed reactions from investors and analysts to Liberty Energy’s recent performance and strategic direction.
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