LBRT - Liberty Energy: Cruising At Altitude (Rating Downgrade)
2024-05-06 08:00:00 ET
Summary
- Liberty Energy Inc. is a top-performing company in the fracking industry, with a strong stock rally despite challenges faced by competitors.
- The macro environment for North American frackers is uncertain due to building crude and gas inventory, inflation concerns, and potential Fed interest rate cuts.
- Liberty Energy is an innovative company with high efficiency and strong long-term results, but the current weakness in the service sector and decreased activity in North America pose risks.
- We rate Liberty Energy Inc. stock as a hold at current prices, but would buy at levels 10-15% lower.
Introduction
We last reviewed Liberty Energy Inc. ( LBRT ) with a buy in a catchy titled article, " Frac To The Future ," in late December of last year. We gave the company a pretty thorough treatment there, so this review should be considered an update to that prior coverage. If you are new to my writing and coverage, please give the linked article a read for deeper background on the company....
Liberty Energy: Cruising At Altitude (Rating Downgrade)