Gold prices edge higher on raised Fed rate cut hopes
On Thursday, Stifel analysts maintained a Buy rating and a $23.00 price target for Liberty Oilfield Services (NYSE:LBRT), following the company’s release of its fourth-quarter financial results for 2024. The results showed a slight decline in revenue, falling 3.4% short of Stifel’s projections and 3.9% below the consensus. Additionally, adjusted EBITDA was 9.0% and 7.2% under Stifel’s estimate and the consensus, respectively. According to InvestingPro data, the company’s EBITDA for the last twelve months stands at $881.31 million, with a healthy P/E ratio of 9.09x, suggesting relatively attractive valuations despite recent performance challenges.
Liberty Oilfield Services management anticipates modest growth in the first quarter of 2025, which could suggest potential downside risks to current expectations. Despite the modest miss in the fourth quarter of 2024, Stifel analysts believe that the market has already accounted for this in the company’s share price. Management has highlighted early indications of stabilization in the frac markets, with oil producers maintaining their levels of activity and natural gas fundamentals showing signs of improvement. InvestingPro analysis indicates the company remains undervalued, with 5 analysts recently revising their earnings expectations downward. The company maintains strong financial health with an overall score of 3.16/5, operating with a moderate debt level and demonstrating consistent profitability over the past year.
Entering the 2025 fiscal year, Liberty Oilfield Services has identified two strategic priorities. The company is focusing on continuing technological innovation within completions and expanding into the power generation market. To address the growing demand from data centers, manufacturing, and industrial electrification, Liberty Oilfield Services is accelerating its power strategy. The company aims to deploy an additional 400 megawatts (MW) of capacity by the end of the 2026 fiscal year. Supporting these initiatives, the company maintains a strong financial position with a current ratio of 1.27 and has demonstrated its commitment to shareholder returns by raising its dividend for three consecutive years, with a 60% dividend growth in the last twelve months. For deeper insights into LBRT’s growth strategy and financial metrics, investors can access the comprehensive Pro Research Report available on InvestingPro.
Stifel’s commentary was released in anticipation of further details expected during the earnings call scheduled for 10:00 AM ET on Thursday, January 30, 2025. The firm’s position on the stock remains unchanged, viewing the earnings release as neutral for Liberty Oilfield Services shares. Investors and analysts alike are looking forward to additional insights from the company’s management during the call. The company’s analyst consensus recommendation stands at 2.14, with price targets ranging from $16 to $27, reflecting diverse market perspectives on its future performance.
In other recent news, Liberty Energy Inc. has made significant changes to its leadership and board, while also reporting strong financial performance. The energy services company expanded its board and appointed Arjun Murti and Ron Gusek as new directors. Murti, with notable experience in the energy sector, has been appointed as a Class I director, while Gusek’s appointment as a Class II director is contingent upon the resignation of current CEO, Chris Wright.
These changes have occurred alongside Liberty Energy’s robust financial performance, which includes a revenue of $4.45 billion and a P/E ratio of 10.39. Analysts from Citi revised their fourth-quarter EBITDA estimate for the company downward by 3% to $166 million and reduced their 2025 EBITDA estimate by 4% to $765 million.
Analysts have also made adjustments to their ratings, with Citi downgrading the company’s stock from Buy to Neutral. Other firms such as Stifel and RBC Capital Markets adjusted their price targets, while Goldman Sachs maintained a neutral view on Liberty Energy. These developments reflect recent events in the company’s financial and leadership landscape.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.