Liberty Energy Targets Data Center Power Growth As Valuation Questions Emerge

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• Liberty Energy (NYSE:LBRT) is expanding into distributed power solutions, targeting data centers and industrial customers.

• The company has announced long term power agreements with leading data center developers.

• Liberty plans to deploy 3 GW of power by 2029 as part of this expansion.

• The company is incorporating AI driven tools into its operations and project management for this new business line.

Liberty Energy, trading at $24.65, is best known for its completions business. Its recent push into power solutions marks a broadening of its role in the energy value chain. The stock has returned 18.3% over the past week, 30.6% over the past month, and 37.9% over the past year, indicating that this shift in focus has attracted market attention.

The move into distributed power for data centers and industrial users, combined with AI supported project execution, gives Liberty direct exposure to electricity demand from digital infrastructure. For investors watching NYSE:LBRT, key questions include how quickly the planned 3 GW of capacity translate into contracted revenue and how the power segment will fit alongside the legacy completions business over time.

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How Liberty Energy stacks up against its biggest competitors

• ⚖️ Price vs Analyst Target: At US$24.65, Liberty Energy trades about 9% above the US$22.62 analyst target, with estimates ranging from US$17.00 to US$34.00.

• ✅ Simply Wall St Valuation: The shares are described as trading 27% below the Simply Wall St fair value estimate.

• ✅ Recent Momentum: The 30 day return of about 30.6% shows strong recent momentum into the distributed power announcement.

Check out Simply Wall St’s in depth valuation analysis for Liberty Energy.

• 📊 The 3 GW distributed power plan ties Liberty directly to data center electricity demand while the core business remains in energy services.

• 📊 Watch how much of the 3 GW target is backed by firm long term contracts, the margin profile of power projects versus completions, and the P/E of 27.0 versus the 22.4 industry average.

• ⚠️ Earnings are forecast to decline on average over the next three years and the current net margin of 3.7% sits below the 7.4% industry average.

For the full picture including more risks and rewards, check out the complete Liberty Energy analysis.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include LBRT.

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