Josh Silverstein, an analyst from UBS, has initiated a new Buy rating on Liberty Oilfield Services (LBRT).
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Josh Silverstein has given his Buy rating due to a combination of factors that highlight Liberty Oilfield Services’ potential for growth and value. The company’s Liberty Power Innovations (LPI) unit is a significant driver, with expectations to deploy 1GW by mid-2028, contributing substantially to future EBITDA. This new venture is currently undervalued by the market, providing an opportunity for upside as Power Purchase Agreements (PPAs) are anticipated to be signed in the coming months, supporting a higher valuation.
Additionally, Liberty’s core frac business, despite recent revenue and margin declines, is expected to recover with stronger setups in the latter half of 2026 and into 2027. The company’s ability to adapt with digital and e-fleets that can operate on various power sources positions it well for future growth. The overall valuation of $23 per share reflects a balanced view of both the base business and the LPI unit, considering potential risks such as oil price volatility and macroeconomic conditions.
According to TipRanks, Silverstein is a 4-star analyst with an average return of 5.8% and a 53.91% success rate. Silverstein covers the Energy sector, focusing on stocks such as Chevron, Exxon Mobil, and Occidental Petroleum.