Stifel has increased its price target for Liberty Energy Inc (NYSE:LBRT) to $28.00 from $23.00 while retaining a Buy recommendation on the shares, the firm said, following Liberty Energy’s robust fourth-quarter performance.
According to Stifel, the upgrade in the target reflects fourth-quarter EBITDA that outpaced analyst expectations. The firm called attention to advancements in Liberty’s Power Generation segment, highlighting recent agreements with Vantage Power and an energy supply deal with a large data center customer as constructive developments for that unit.
Stifel also noted that Liberty has expanded the scope of its power generation ambitions. The company now plans to deliver 3 gigawatts of power generation assets by 2029, a substantial increase from its prior target of 1 gigawatt by the end of 2027. Stifel flagged that while the U.S. pressure pumping business may continue to face pricing headwinds, the firm believes estimates for Liberty have likely reached a trough.
Liberty Energy’s reported financial results for the fourth quarter of 2025 underpin the analyst attention. The company posted earnings per share of $0.05, versus analyst expectations of -$0.1994, and reported revenue of $1.04 billion compared with forecasts of $880.54 million. Stifel characterized these outcomes as notable upside, reflected in a 125.08% positive surprise on EPS and an 18.11% revenue beat relative to expectations.
In parallel, Piper Sandler moved to upgrade Liberty Energy’s rating from Neutral to Overweight and raised its price target to $32.00 from $17.00. Piper Sandler cited growth in Liberty’s power business and pointed to recent agreements with data center developers for up to 1.3 gigawatts of capacity as a rationale for the stronger outlook.
The combination of stronger-than-expected quarterly financials and expanded power generation commitments has prompted multiple sell-side firms to revise their stances on the company. Stifel’s maintained Buy rating and higher target reflect confidence in the near-term trajectory of Liberty’s power unit, even as pressures in legacy services persist.
Key points
- Stifel increased its price target on Liberty Energy to $28.00 from $23.00 and kept a Buy rating after Q4 EBITDA beat expectations.
- Liberty expanded its power generation target to 3 GW by 2029 from a prior goal of 1 GW by end-2027 and signed agreements including one with Vantage Power and an energy supply deal with a large data center customer.
- Piper Sandler upgraded the stock to Overweight and raised its target to $32.00 from $17.00, citing up to 1.3 GW of capacity agreements with data center developers.
Risks and uncertainties
- Pricing headwinds in Liberty’s U.S. pressure pumping business may continue, a factor highlighted by Stifel that could affect margins in the oilfield services segment.
- Execution risk tied to scaling power generation to the newly stated 3 GW target by 2029, including delivery and contracting timelines for large-scale projects.
Summary outlook
Analysts’ actions reflect an improving revenue and earnings profile for Liberty Energy driven by its power generation business and better-than-expected quarterly results. While Stifel acknowledged persistent pricing pressure in pressure pumping, both Stifel and Piper Sandler have moved to more constructive views based on recent operational and contract developments in the power segment.