Liberty Energy's (LBRT) frac fleet is essentially fully utilized for Q3, but is expected to remain lower sequentially, while recent pricing wins won't show up immediately reflecting duration mix, UBS said in a note emailed Wednesday.

UBS expects pricing improvements to have a greater impact in 2027, while Liberty Energy remains confident it can secure at least 500 MW of energy services agreements by year-end, according to the note. The firm sees significant upside potential from Liberty Energy's power infrastructure business.

UBS currently estimates Q3 adjusted earnings before interest, taxes, depreciation and amortization of $143 million compared with $156 million consensus and revenue of $1.19 billion versus Street's $1.22 billion, reflecting lower frac utilization and the delayed impact of pricing wins.

The firm also cut fiscal 2027 and fiscal 2028 adjusted EBITDA estimates to $697 million and $1.15 billion from $756 million and $1.23 billion, respectively.

UBS maintained its buy rating but cut its price target to $31 from $35.

Price: 18.35, Change: -0.09, Percent Change: -0.49