Liberty Oilfield Services, the Energy sector company, was revisited by a Wall Street analyst today. Analyst Scott Gruber from Citi upgraded the rating on the stock to a Buy and gave it a $21.00 price target.
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Scott Gruber has given his Buy rating due to a combination of factors that highlight Liberty Oilfield Services’ strategic direction and growth potential. The company is making a significant investment in power, aiming to reach over 1GW of capacity by the end of 2027. This move, although it may initially increase spending and leverage, is expected to accelerate the company’s transition, with power contributing a substantial portion of EBITDA.
Gruber believes that Liberty Oilfield Services is well-positioned to capture quality data center contracts, especially as onsite generation becomes more critical with the rise of AI investments. The valuation framework used by Gruber suggests a target price of $21 per share, reflecting a sum-of-the-parts analysis and accounting for potential risks. The anticipated return on investment and the macroeconomic backdrop support the soundness of this investment, making the Buy rating a strategic decision.
In another report released yesterday, Stifel Nicolaus also maintained a Buy rating on the stock with a $19.00 price target.