Cautious Optimism for Liberty Oilfield Services Amid Positive Q1 Results and Future Challenges

Analyst Marc Bianchi of TD Cowen maintained a Hold rating on Liberty Oilfield Services (LBRT – Research Report), reducing the price target to $13.00.

Marc Bianchi has given his Hold rating due to a combination of factors that reflect both positive and cautious elements in Liberty Oilfield Services’ current and future performance. The company reported better-than-expected results for the first quarter and provided guidance for sequential improvement in the second quarter, which was a positive surprise. Despite the weaker oil prices and macroeconomic uncertainties, Liberty has not yet observed any significant reduction in customer activity, which is a favorable sign for the U.S. Onshore Service sector.
However, Bianchi remains cautious due to potential future challenges. The company’s cash flow is being consumed at the current levels of EBITDA and capital expenditures, and management has indicated a priority to protect the balance sheet, which may affect the share repurchase program. Additionally, while Liberty is making progress in its power offering and partnerships, these developments need to translate into binding contracts to positively impact the stock. Although the price target has been raised from $10 to $13, reflecting improved estimates, there are concerns about potential declines in the second half of the year and into 2026 due to anticipated rig count weakness.

In another report released on April 17, RBC Capital also maintained a Hold rating on the stock with a $16.00 price target.