Liberty Energy upgraded to Overweight at Morgan Stanley as data center play

As previously reported, Morgan Stanley upgraded Liberty Energy (LBRT) to Overweight from Equal Weight with a price target of $25, up from $20. Against a muted macro backdrop for North American shale completions markets, the firm favors “premium players” like Liberty, the analyst tells investors. Earnings prospects for the new Power Generation Services business seem “underappreciated” and Liberty does not appear to be getting “full (if any) valuation credit for these investments,” argues the analyst, who views the stock as “a way to play the data center/power demand growth theme at an undemanding price.”