Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Stifel maintained its buy rating and $22.00 price target on Liberty Energy Inc (NYSE:LBRT) following meetings with the company’s management team. According to InvestingPro data, the company appears undervalued, with a P/E ratio of 8.3x and strong financial health metrics. Management has been actively buying back shares, demonstrating confidence in the company’s outlook.
The investment firm’s decision came after three days of discussions with Liberty Energy CEO Ron Gusek and IR VP Anjali Voria, during which management expressed confidence about strong second-quarter performance.
Stifel noted that Middle East conflict might drive higher U.S. activity over time, with private operators leading this potential increase, potentially benefiting Liberty Energy’s operations.
The firm highlighted Liberty Energy’s significant market share in the Haynesville region, positioning the company favorably when natural gas activity increases to support upcoming LNG export capacity.
Stifel also pointed to Liberty’s Power Generation (HM:PGV) business as being in early growth stages with substantial opportunity, noting that this segment’s EBITDA could potentially match the size of the company’s core business over multiple years as capacity expands beyond 3 gigawatts.
In other recent news, Liberty Energy reported mixed financial results for the first quarter of 2025, with revenue surpassing expectations at $977 million, compared to a forecast of $956.66 million. However, the company’s earnings per share fell short, coming in at $0.04 against a predicted $0.0575. Despite this, Liberty Energy’s stock saw an increase in after-hours trading, reflecting positive investor sentiment. Shareholders approved significant amendments to the company’s charter, including the declassification of the board and the elimination of supermajority voting requirements. Analyst firms have made adjustments to their price targets for Liberty Energy; Stifel decreased its target to $22 while maintaining a Buy rating, and JPMorgan reduced its target to $16 with a Neutral rating. Liberty Energy has also reaffirmed its full-year EBITDA guidance, ranging from $700 million to $750 million, while acknowledging potential risks from tariffs and changes in OPEC+ policy. Additionally, the company has signed a Memorandum of Understanding with Imperial Land Corporation and Range Resources (NYSE:RRC) for power generation infrastructure, with potential operations starting in 2027. Liberty Energy is focusing on smaller data center projects and expects to expand as market opportunities grow.
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