Is UBS’s Focus on Distributed Power Reframing Liberty Energy’s (LBRT) Core Investment Story?

• Earlier this month, UBS initiated coverage of Liberty Energy Inc., highlighting the company’s growing distributed power business and its position as a major North American hydraulic fracturing provider.
• UBS’s focus on Liberty Power Innovations’ plan to build hundreds of megawatts of new distributed generation capacity underscores how power solutions are becoming a more central part of Liberty’s long-term story beyond traditional frac services.
• We’ll now examine how UBS’s emphasis on Liberty’s expanding distributed power capacity could influence the company’s existing investment narrative.

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Liberty Energy Investment Narrative Recap

To own Liberty Energy, you need to believe its core North American frac business can weather a softer 2025 while newer power solutions gain traction. UBS’s coverage reinforces power as a key long term pillar, but it does not remove the near term risk that weaker completions activity and pricing pressure could keep revenue and earnings under strain as early as the second half of 2025.

The UBS report lines up closely with Liberty’s own comments around building large scale distributed power capacity, including Liberty Power Innovations’ targets for hundreds of megawatts of new generation. For investors, that push into distributed power directly connects to the main catalyst: Liberty’s attempt to offset a maturing frac cycle with higher value, longer duration energy solutions that could gradually reshape the mix of the business.

Yet while the long term power story is appealing, investors should be aware that the softening completions outlook could still...

Read the full narrative on Liberty Energy (it's free!)

Liberty Energy's narrative projects $4.3 billion revenue and $41.3 million earnings by 2028. This requires 1.8% yearly revenue growth and a $175.5 million earnings decrease from $216.8 million today.

Uncover how Liberty Energy's forecasts yield a $18.00 fair value, a 13% downside to its current price.

Exploring Other Perspectives

Six fair value estimates from the Simply Wall St Community span roughly US$8.06 to US$19, showing how far apart individual views on Liberty’s prospects can be. Against that backdrop, UBS’s focus on Liberty’s build out of distributed power capacity highlights how differently people weigh the near term risk of weaker completions against the potential of a broader energy solutions model over time.

Explore 6 other fair value estimates on Liberty Energy - why the stock might be worth as much as $19.00!

Build Your Own Liberty Energy Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Liberty Energy research is our analysis highlighting 1 key reward and 4 important warning signs that could impact your investment decision.
• Our free Liberty Energy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Liberty Energy's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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