Analyst Assumes Coverage of ProFrac Holding (ACDC) with ‘Underweight’ Rating

Core Viewpoint - ProFrac Holding Corp. (NASDAQ:ACDC) is facing downward pressure on its share price, primarily due to a recent 'Underweight' rating from Morgan Stanley, which indicates a potential decline in value amid a challenging energy market environment [2][3]. Group 1: Stock Performance - The share price of ProFrac Holding Corp. fell by 4.06% between December 17 and December 24, 2025, ranking it among the energy stocks that lost the most during that week [1]. - On December 15, the stock slid after Morgan Stanley initiated coverage with an 'Underweight' rating and a price target of $3.5, suggesting a downside potential of over 7% from the current share price [3]. Group 2: Market Conditions - Global crude prices recently dropped to their lowest levels since February 2021, influenced by weak employment data and concerns about oversupply [4]. - Although oil prices have seen a slight rebound, ongoing uncertainties, including the potential for a peace deal in the Russia-Ukraine war, continue to exert pressure on the market [4]. Group 3: Investment Outlook - While there is recognition of ProFrac Holding's potential as an investment, certain AI stocks are perceived to offer greater upside potential with less downside risk [5].