Liberty Energy (LBRT) is expected to benefit from its new power generation services business, whose earnings prospects are undervalued by investors, as well as from the stabilizing North American fracking market, Morgan Stanley said in a note Wednesday.
Liberty Energy's experience in developing mobile power generating units for its electric fracturing fleet, gas logistics business, innovation culture, and strong management give it a competitive advantage, according to the note.
The company's core completion services business might be at a market bottom, but recovery is expected in gas demand and frac activity, Morgan Stanley said.
Liberty Energy is strategically positioned to capitalize on growing power demand, particularly from data centers and industrial users, the note added.
Morgan Stanley upgraded Liberty Energy's stock to overweight from equal-weight and raised its price target to $25 from $20.
Shares of the company were up 5.8% in recent trading Thursday.
Price: 16.32, Change: +0.90, Percent Change: +5.80
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。