Canaccord Genuity Reiterates a 'Buy' on SM Energy (SM); Still A Favorite Name

August 31, 2012 8:42 AM EDT
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Price: $32.25 -0.46%

Rating Summary:
    21 Buy, 14 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Canaccord Genuity reiterates a 'Buy' on SM Energy (NYSE: SM) price target of $106.00.

Analyst, John Gerdes, said, " This is decidedly contrarian view, as we’re hard pressed to find a more out-of-favor E&P. Unfortunately, much of the equity underperformance and investor condemnation this year has been merited. SM has lowered guidance on two occasions, gas/NGL prices tanked and the company’s highest productivity asset (Galvan Ranch) is ~60% natural gas."

"SM’s capital cost/recovery relationship suggests the company’s capital productivity is ~10% superior rather than inferior to the industry (liquids-normalized). Yet, SM trades at a ~30% discount (’13E EBITDA) to the sector though should generate almost 20% greater CFPS growth (’12-’14E CAGR)."

For an analyst ratings summary and ratings history on SM Energy click here. For more ratings news on SM Energy click here.

Shares of SM Energy closed at $45.93 yesterday.

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