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On Tuesday, Stifel analysts adjusted their stance on Liberty Energy Inc (NYSE: LBRT), decreasing the stock’s price target to $22.00 from the previous $23.00, while reiterating a Buy rating. The revision follows Liberty Energy’s first-quarter results of 2025, which surpassed expectations, coupled with a positive short-term outlook that exceeded analysts’ forecasts. According to InvestingPro data, five analysts have recently revised their earnings estimates upward for the upcoming period, and the stock appears undervalued based on comprehensive Fair Value analysis. Discover more insights about LBRT and 1,400+ other stocks with InvestingPro’s detailed research reports.
Liberty Energy reported robust performance in the first quarter of 2025, prompting Stifel to acknowledge the company’s strong and consistent execution as well as its high-quality fleet, factors that are expected to contribute to its outperformance relative to the industry’s underlying activity. The company maintains a healthy P/E ratio of 7.55, while management has been actively buying back shares. Despite the favorable near-term perspective, Stifel adopted a more cautious approach for the year 2026, pending further clarity.
The firm has revised its EBITDA forecasts for Liberty Energy for the years 2025 and 2026. The new forecasts are set at $689 million for 2025, down from the previously estimated $630 million, and $843 million for 2026, reduced from the earlier projection of $883 million. For context, Liberty’s last twelve months EBITDA stands at $812 million. The decrease in the price target to $22 is a direct result of these updated EBITDA expectations. InvestingPro subscribers can access detailed financial health scores and comprehensive analysis of Liberty Energy’s performance metrics.
Stifel’s analyst Stephen Gengaro commented on the adjustments, stating, "LBRT delivered better-than-expected 1Q25 results and provided a more optimistic near-term outlook than we expected. We continue to believe LBRT’s strong, consistent execution and high-quality fleet will enable it to outperform underlying industry activity." He further explained the rationale behind the revisions, "We are taking a more conservative view of 2026 until the clouds clear. We are adjusting our 2025-26 EBITDA forecasts to $689 million and $843 million, from $630 million and $883 million, respectively. We are lowering our target price to $22 from $23 based on our revised forecasts, and maintain our Buy rating."
Liberty Energy’s stock price will continue to be monitored by investors as the company navigates through the changing market conditions and works towards meeting the revised financial projections set forth by Stifel. The company has demonstrated strong fundamentals, including consistent dividend growth of 14.29% and positive free cash flow yield, though the stock has experienced a significant YTD decline of 41.68%.
In other recent news, Liberty Energy reported mixed financial results for the first quarter of 2025. The company exceeded revenue expectations with $977 million, surpassing the forecasted $956.66 million. However, earnings per share fell short at $0.04 compared to the anticipated $0.0575. Despite the earnings miss, Liberty Energy’s stock saw a positive reaction, reflecting investor confidence in the company’s revenue growth and strategic initiatives. In governance news, Liberty Energy shareholders approved significant amendments to the company’s charter and bylaws, including the declassification of the board and the elimination of supermajority voting requirements. Additionally, JPMorgan has adjusted its price target for Liberty Energy to $16, down from $18, while maintaining a Neutral rating. The company is also progressing in its power generation ventures, expecting initial delivery of generation capacity in the third quarter of 2025. Liberty Energy’s management remains optimistic about continued strong performance into the second quarter, maintaining its full-year EBITDA guidance between $700 million and $750 million.
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