TD Cowen analyst Marc Bianchi has maintained their neutral stance on LBRT stock, giving a Hold rating on November 3.
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Marc Bianchi’s rating is based on a combination of factors, primarily focusing on Liberty Oilfield Services’ strategic plans and market positioning. The company has announced ambitious plans to expand its power generation capacity significantly by 2027, which involves a substantial investment. While this expansion is promising, it comes with the challenge of securing meaningful offtake agreements, which are not yet in place.
Despite the potential of the power business, the company’s core fracturing business remains the primary revenue driver for the foreseeable future. Recent earnings were slightly below expectations, although they were better than anticipated under the circumstances. The market’s valuation of Liberty’s power business is still developing, and while the stock saw a temporary increase, it has since stabilized. Therefore, Bianchi’s Hold rating reflects a cautious approach, recognizing both the potential and the uncertainties in Liberty’s strategic initiatives.
In another report released on November 3, Piper Sandler also maintained a Hold rating on the stock with a $16.00 price target.