Liberty Oilfield Services (LBRT) PT Raised to $26 at Wells Fargo
Wells Fargo analyst Christopher Voie raised the price target on Liberty Oilfield Services (NYSE: LBRT) to $26.00 (from $24.00) while maintaining a Overweight rating.
The analyst comments "We maintain a positive view based on LBRT's discounted valuation relative to peers, strong FCF outlook, cash returns and higher margin LPI/digi/AI investments. Maintain OW and raise PT to $26 on higher EBITDA; EPS lower on higher DD&A assumption. Steady FCF Conversion. LBRT should generate robust returns and FCF. We expect underlying growth momentum (mix + margins) will flow through to valuation. Downward revisions to near-term EPS estimates reflect non-cash items associated with margin expansion and the late innings of the nat gas correction. We estimate LBRT's FCF conversion rate from EBITDA to increase from ~38% in 2024E to ~43% in 2025E as the company continues rolling out its improved mix and trims growth capex."