Bank of America Upgrades Liberty Energy to Buy with $31 Target
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy LBRT?
Source: seekingalpha
- Upgrade Announcement: Bank of America upgraded Liberty Energy from Neutral to Buy with a price target raised from $20 to $31, reflecting the company's best-in-class pressure pumping technology and strong customer relationships, which are expected to drive stock price appreciation.
- Market Recovery Outlook: Analysts anticipate that after two years of cyclical decline, Liberty's completions business activity and pricing will bottom out in 2026, followed by a recovery in 2027-2028, indicating significant growth potential for the company in the market.
- Power Business Expansion: Liberty aims to achieve a targeted 3 GW deployed capacity in behind-the-meter power by the end of 2029, leveraging its oilfield expertise as data centers increasingly turn to this power solution, despite facing execution challenges.
- Financial Backing: Recent contracts with Vantage and an unnamed data center developer in Texas, along with a $700 million convertible debt deal, provide crucial funding support for Liberty's ambitions in the power sector.
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Analyst Views on LBRT
Wall Street analysts forecast LBRT stock price to fall
11 Analyst Rating
5 Buy
6 Hold
0 Sell
Moderate Buy
Current: 26.680
Low
13.00
Averages
18.91
High
24.00
Current: 26.680
Low
13.00
Averages
18.91
High
24.00
About LBRT
Liberty Energy Inc. is an energy services company. The Company is a provider of completion services and technologies to onshore oil, natural gas, and enhanced geothermal energy producers in North America. It also owns and operates Liberty Power Innovations LLC, providing advanced distributed power and energy storage solutions for the commercial and industrial, data center, energy, and mining industries. It provides hydraulic fracturing services and related technologies to onshore oil and natural gas exploration and production (E&P) companies. It offers customers hydraulic fracturing services, together with complementary services including wireline services, proppant delivery solutions, field gas processing and treating, compressed natural gas (CNG) delivery, data analytics, related goods (including its sand mine operations), and technologies to facilitate lower emission completions. The Company’s areas of operations are in all the active shale basins in North America.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Bank of America Upgrades Liberty Energy to Buy with $31 Target
- Upgrade Announcement: Bank of America upgraded Liberty Energy from Neutral to Buy with a price target raised from $20 to $31, reflecting the company's best-in-class pressure pumping technology and strong customer relationships, which are expected to drive stock price appreciation.
- Market Recovery Outlook: Analysts anticipate that after two years of cyclical decline, Liberty's completions business activity and pricing will bottom out in 2026, followed by a recovery in 2027-2028, indicating significant growth potential for the company in the market.
- Power Business Expansion: Liberty aims to achieve a targeted 3 GW deployed capacity in behind-the-meter power by the end of 2029, leveraging its oilfield expertise as data centers increasingly turn to this power solution, despite facing execution challenges.
- Financial Backing: Recent contracts with Vantage and an unnamed data center developer in Texas, along with a $700 million convertible debt deal, provide crucial funding support for Liberty's ambitions in the power sector.
See More
LIBERTY ENERGY INC: BOFA GLOBAL RESEARCH UPGRADES TO BUY RATING
Company Overview: Liberty Energy Inc. is a company involved in the energy sector, focusing on providing services and solutions related to energy production and management.
Research and Ratings: The company has received a "buy" rating from BofA Global Research, indicating a positive outlook on its stock performance and potential for growth.
Market Position: Liberty Energy is positioned to capitalize on trends in the energy market, which may enhance its competitive advantage and profitability.
Investment Potential: The positive rating from BofA suggests that investors may find Liberty Energy a worthwhile investment opportunity in the current market landscape.
See More
Latest Ratings and Outlook from Wall Street
- Nvidia Rating Reaffirmed: Citi reiterates Nvidia as a buy, anticipating the stock will outperform in the second half of 2026 as demand visibility extends into 2027, recommending investors add to their positions given attractive valuations.
- Toast Upgraded to Outperform: Bernstein upgrades Toast from market perform to outperform, noting that despite a 26% year-to-date decline, the restaurant tech company is positioned as an AI winner, suggesting a positive outlook.
- Carvana Maintains Overweight Rating: JPMorgan reiterates Carvana as overweight, asserting that fears surrounding AI are overblown, with the company's vertically integrated infrastructure providing a unique competitive moat to leverage AI effectively.
- Melco Upgraded to Buy: UBS upgrades Melco from neutral to buy, highlighting that despite a 27% year-to-date decline, enhancements at its City of Dreams in Macau are expected to offset margin pressures and branding fee increases in 2026.
See More
Liberty Energy Sells $700M Convertible Notes Due 2031
- Increased Offering Size: Liberty Energy announced the sale of $700 million in 0.00% convertible senior notes, up from the previously planned $500 million, with expected closing around February 6, 2026, indicating strong demand in the capital markets.
- Attractive Conversion Terms: Each $1,000 of notes converts into 28.9830 shares of Class A common stock at a conversion price of approximately $34.50, representing a 32.5% premium over the last closing price of $26.04 on February 3, 2026, providing potential capital appreciation for investors.
- Clear Use of Proceeds: The company expects to net about $678.1 million from the offering, allocating approximately $99.4 million for capped call transactions, with remaining funds directed towards debt repayment and general corporate purposes, reflecting a focus on financial stability.
- Additional Purchase Option: Liberty granted initial purchasers an option to buy up to an additional $70 million in notes within 13 days of issuance, which, if fully exercised, could increase net proceeds to approximately $746 million, further enhancing the company's capital structure and flexibility.
See More
Liberty Energy Prices $700 Million Convertible Notes Offering
- Increased Offering Size: Liberty Energy announced the pricing of $700 million in 0.00% convertible senior notes, up from the previously announced $500 million, indicating strong market confidence in its financing needs, with the offering expected to close on February 6, 2026.
- Flexible Conversion Terms: The notes have an initial conversion rate of 28.9830 shares of common stock per $1,000 principal amount, with a conversion price of approximately $34.50 per share, representing a 32.5% premium over the current stock price, providing investors with potential capital appreciation opportunities.
- Clear Use of Proceeds: Liberty intends to use the estimated net proceeds of approximately $678.1 million to fund the costs of Capped Call transactions, repay outstanding debt, and for general corporate purposes, demonstrating a focus on financial stability.
- Risk Management Measures: The company entered into Capped Call transactions with initial purchasers to mitigate dilution from the conversion of notes, further enhancing investor confidence in the future performance of its stock.
See More
Liberty Energy Inc. Prices $700 Million Convertible Notes Offering
- Bond Offering Size: Liberty Energy Inc. announced the pricing of $700 million in 0.00% convertible senior notes, increasing from the previously announced $500 million, reflecting strong market demand, with the offering expected to close on February 6, 2026.
- Conversion Terms Advantage: The initial conversion rate is set at 28.9830 shares of common stock per $1,000 principal amount, with a conversion price of approximately $34.50, representing a 32.5% premium over the current stock price of $26.04, which may attract investors to convert in the future, thereby strengthening the company's capital structure.
- Clear Use of Proceeds: Liberty intends to utilize approximately $678.1 million in net proceeds to fund the costs of Capped Call transactions, repay outstanding debt under a credit agreement, and for general corporate purposes, demonstrating a focus on financial stability.
- Risk Management Measures: The company has entered into Capped Call transactions with initial purchasers to mitigate potential dilution of common stock upon conversion, while also potentially influencing stock price through hedging activities, thereby enhancing investor confidence.
See More
Bank of America Upgrades Liberty Energy to Buy with $31 Target
- Upgrade Announcement: Bank of America upgraded Liberty Energy from Neutral to Buy with a price target raised from $20 to $31, reflecting the company's best-in-class pressure pumping technology and strong customer relationships, which are expected to drive stock price appreciation.
- Market Recovery Outlook: Analysts anticipate that after two years of cyclical decline, Liberty's completions business activity and pricing will bottom out in 2026, followed by a recovery in 2027-2028, indicating significant growth potential for the company in the market.
- Power Business Expansion: Liberty aims to achieve a targeted 3 GW deployed capacity in behind-the-meter power by the end of 2029, leveraging its oilfield expertise as data centers increasingly turn to this power solution, despite facing execution challenges.
- Financial Backing: Recent contracts with Vantage and an unnamed data center developer in Texas, along with a $700 million convertible debt deal, provide crucial funding support for Liberty's ambitions in the power sector.
See More
LIBERTY ENERGY INC: BOFA GLOBAL RESEARCH UPGRADES TO BUY RATING
Company Overview: Liberty Energy Inc. is a company involved in the energy sector, focusing on providing services and solutions related to energy production and management.
Research and Ratings: The company has received a "buy" rating from BofA Global Research, indicating a positive outlook on its stock performance and potential for growth.
Market Position: Liberty Energy is positioned to capitalize on trends in the energy market, which may enhance its competitive advantage and profitability.
Investment Potential: The positive rating from BofA suggests that investors may find Liberty Energy a worthwhile investment opportunity in the current market landscape.
See More
Latest Ratings and Outlook from Wall Street
- Nvidia Rating Reaffirmed: Citi reiterates Nvidia as a buy, anticipating the stock will outperform in the second half of 2026 as demand visibility extends into 2027, recommending investors add to their positions given attractive valuations.
- Toast Upgraded to Outperform: Bernstein upgrades Toast from market perform to outperform, noting that despite a 26% year-to-date decline, the restaurant tech company is positioned as an AI winner, suggesting a positive outlook.
- Carvana Maintains Overweight Rating: JPMorgan reiterates Carvana as overweight, asserting that fears surrounding AI are overblown, with the company's vertically integrated infrastructure providing a unique competitive moat to leverage AI effectively.
- Melco Upgraded to Buy: UBS upgrades Melco from neutral to buy, highlighting that despite a 27% year-to-date decline, enhancements at its City of Dreams in Macau are expected to offset margin pressures and branding fee increases in 2026.
See More
Liberty Energy Sells $700M Convertible Notes Due 2031
- Increased Offering Size: Liberty Energy announced the sale of $700 million in 0.00% convertible senior notes, up from the previously planned $500 million, with expected closing around February 6, 2026, indicating strong demand in the capital markets.
- Attractive Conversion Terms: Each $1,000 of notes converts into 28.9830 shares of Class A common stock at a conversion price of approximately $34.50, representing a 32.5% premium over the last closing price of $26.04 on February 3, 2026, providing potential capital appreciation for investors.
- Clear Use of Proceeds: The company expects to net about $678.1 million from the offering, allocating approximately $99.4 million for capped call transactions, with remaining funds directed towards debt repayment and general corporate purposes, reflecting a focus on financial stability.
- Additional Purchase Option: Liberty granted initial purchasers an option to buy up to an additional $70 million in notes within 13 days of issuance, which, if fully exercised, could increase net proceeds to approximately $746 million, further enhancing the company's capital structure and flexibility.
See More
Liberty Energy Prices $700 Million Convertible Notes Offering
- Increased Offering Size: Liberty Energy announced the pricing of $700 million in 0.00% convertible senior notes, up from the previously announced $500 million, indicating strong market confidence in its financing needs, with the offering expected to close on February 6, 2026.
- Flexible Conversion Terms: The notes have an initial conversion rate of 28.9830 shares of common stock per $1,000 principal amount, with a conversion price of approximately $34.50 per share, representing a 32.5% premium over the current stock price, providing investors with potential capital appreciation opportunities.
- Clear Use of Proceeds: Liberty intends to use the estimated net proceeds of approximately $678.1 million to fund the costs of Capped Call transactions, repay outstanding debt, and for general corporate purposes, demonstrating a focus on financial stability.
- Risk Management Measures: The company entered into Capped Call transactions with initial purchasers to mitigate dilution from the conversion of notes, further enhancing investor confidence in the future performance of its stock.
See More
Liberty Energy Inc. Prices $700 Million Convertible Notes Offering
- Bond Offering Size: Liberty Energy Inc. announced the pricing of $700 million in 0.00% convertible senior notes, increasing from the previously announced $500 million, reflecting strong market demand, with the offering expected to close on February 6, 2026.
- Conversion Terms Advantage: The initial conversion rate is set at 28.9830 shares of common stock per $1,000 principal amount, with a conversion price of approximately $34.50, representing a 32.5% premium over the current stock price of $26.04, which may attract investors to convert in the future, thereby strengthening the company's capital structure.
- Clear Use of Proceeds: Liberty intends to utilize approximately $678.1 million in net proceeds to fund the costs of Capped Call transactions, repay outstanding debt under a credit agreement, and for general corporate purposes, demonstrating a focus on financial stability.
- Risk Management Measures: The company has entered into Capped Call transactions with initial purchasers to mitigate potential dilution of common stock upon conversion, while also potentially influencing stock price through hedging activities, thereby enhancing investor confidence.
See More
