TLDR
- Piper Sandler raised Liberty Energy’s price target from $13 to $16 while keeping a Neutral rating
- Shares jumped approximately 30% after earnings, continuing with a 4% gain before Monday’s market open
- Management expects the industry trough in Q4 2025 with recovery starting mid-2026
- Liberty Energy expressed confidence in securing power contracts with visibility to over 1 gigawatt of capacity
- The company plans a 600+ megawatt expansion funded through future energy service agreements or power purchase agreements
Liberty Energy stock got a boost from Piper Sandler on Monday. The analyst raised its price target to $16 from $13.
The firm maintained its Neutral rating on the oilfield services company. LBRT shares jumped about 30% following the earnings release.
Investors seemed to look past a revenue miss in the third quarter. The company posted revenue of $947 million, falling short of the $967.05 million analysts expected.
Liberty Energy also missed on earnings per share. The company reported a loss of $0.06 per share versus the anticipated loss of $0.02 per share.
But the market focused on other parts of the story. Piper Sandler said the quarterly results came in better than feared.
Management provided an upbeat view of the industry’s direction. They projected the sector would hit bottom in the fourth quarter of 2025.
Industry Recovery Timeline Emerges
The company sees recovery beginning around mid-2026. This timeline gave investors something concrete to work with.
Liberty Energy’s market cap currently sits at $2.48 billion. The stock trades at a P/E ratio of 13.57 and offers a dividend yield of 2.35%.
The company’s trailing twelve-month revenue reached $3.91 billion. InvestingPro data shows the stock posted returns of 24.55% in the past week.
However, technical indicators suggest LBRT may be in overbought territory. The stock continued climbing Monday morning with a 4% gain before the market opened.
This extended Friday’s surge of more than 28%. Liberty Energy didn’t announce any power contracts during the earnings call.
But management struck a confident tone about future deals. They said securing power contracts was a question of “when” not “if.”
Power Expansion Plans Take Shape
The company has visibility to more than 1 gigawatt of capacity. Management outlined plans for a 600+ megawatt expansion.
Liberty Energy said it can secure funding for this growth. The company plans to use future energy service agreements or power purchase agreements.
These would be tied to upcoming power contracts. Piper Sandler highlighted this funding strategy in its analysis.
RBC Capital also updated its view on Liberty Energy. The firm raised its price target to $15 from $13 while keeping a Sector Perform rating.
Stifel maintains a Buy rating with a $19 price target. The analysts there see potential in the power generation business.
The positive reaction to Liberty Energy’s report came despite the revenue and earnings misses. FactSet data confirmed analyst expectations were not met on the top or bottom line.
Liberty Energy’s stock performance suggests investors are betting on the future. The company’s outlook for the industry and its power business plans appear to be the main drivers.
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