Liberty Energy Inc (LBRT) PT Lowered to $16 at JPMorgan

JPMorgan analyst Sean Meakim lowered the price target on Liberty Energy Inc (NYSE: LBRT) to $16.00 (from $18.00) while maintaining a Neutral rating.

The analyst comments "JPM View: LBRT shares outperformed the OSX Index by +175bps on the back of a print, which featured a 5% EBITDA beat and anticipation of a sequential increase in 2Q25 results. The company's outlook commentary indicates that the momentum from the first quarter is expected to carry over into 2Q25. While 2Q25 activity could remain intact for Publics and larger operators, which constitute LBRT’s core customer base, we see potential risks around the horizon in 2H25 activity as highlighted in our industry OFS note last week. The company left its full-year $700mm to $750mm in EBITDA guide intact, but did acknowledge potential risks to the downside from tariffs and the shift in OPEC+ policy. We are trimming our 2Q25 EBITDA estimate to $173mm (+2.9% q/q) from $175mm, which is slightly below the mid-single digit sequential EBITDA increase expectation messaged by management on the call. On the mobile power generation side, the company now expects to take delivery of initial generation capacity in 3Q25, complete packaging of the equipment in 4Q25, and commence operations in 1Q26, which is a few months later than we previously anticipated. LBRT signed a MoU with Imperial Land Corporation and Range Resources (RRC) for power generation infrastructure for an 875 acre industrial park in the Northeast. This project could have a start date in 2027. Management also noted that the company is discussing similar partnerships with two other customers. Liberty sees strong demand from customers who are looking to fix their cost of operations and seek long term fixed price agreements. The company is currently focusing on smaller data center projects with power requirements of up to ~250MW, which is expected to ramp up as the company builds expertise in LPI and the opportunity set expands."

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