Update shared on 03 Nov 2025
Fair value Increased 16%Liberty Energy's analyst price target has been revised downward from $14 to $12. This change reflects analysts' caution amid a softer completions market and fully valued shares, despite distributed power exposure.
Analyst Commentary
Recent analyst coverage on Liberty Energy highlights a shift in sentiment as the market faces continued softness and valuation concerns. Below is a summary of the key bullish and bearish takeaways from the latest research updates:
Bullish Takeaways- Liberty Energy maintains exposure to distributed power, an area that has recently attracted positive investor attention and contributed to stronger shares relative to peers.
- Some onshore energy services stocks, including Liberty, have seen an increase in valuations over the past month. This reflects optimism about sector-specific growth drivers.
- The company’s diversified exposure across drilling, completion, production, and power operations positions it to navigate broad sector challenges.
- Analysts expect both activity and pricing declines in the completions market for the next several quarters. This may pressure Liberty’s near-term growth and execution.
- Current valuations are seen as fully reflecting the positive impact of distributed power exposure, which may limit further upside potential.
- The U.S. completions market remains "still-softening," with frac fleets down 20 percent since mid-July. This signals a more challenging operating environment.
- Market crosscurrents such as U.S. land deflation, international deceleration, and a mixed offshore picture add uncertainty and downside risk to the company’s outlook.
What's in the News
- Liberty Energy completed the repurchase of 29,758,186 shares, representing 17.07% of outstanding shares. The total amount repurchased was $479.36 million under its buyback program announced in July 2022 (Key Developments).
- From July 1, 2025 to September 30, 2025, the company did not repurchase any additional shares, which concluded this tranche of the buyback plan (Key Developments).
- The Board of Directors declared a dividend of $0.09 per share to be paid on December 18, 2025, to shareholders of record as of December 4, 2025 (Key Developments).
Valuation Changes
- Fair Value Estimate has increased from $14.15 to $16.46. This reflects a moderately higher valuation outlook.
- Discount Rate has decreased slightly from 7.97 percent to 7.81 percent. This suggests a modest reduction in perceived risk.
- Revenue Growth Estimate has risen from 3.87 percent to 4.43 percent, indicating improved growth expectations.
- Net Profit Margin has declined modestly from 1.34 percent to 1.25 percent, which points to slightly reduced profitability projections.
- Future P/E Ratio has increased from 47.45x to 58.28x. This implies that shares are now valued at a higher multiple of expected earnings.
Disclaimer
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