Canaccord Genuity Reiterates a 'Buy' on St. Mary's (SM); A Mid-Cap Favorite - Expect Strong Growth in Output

Canaccord Genuity reiterates a 'Buy' on St. Mary's (NYSE: SM) price target of $123.00.

Analyst, John Gerdes, said, "We believe SM should report stronger-than-expected Q4/11 and Q1/12 production and at least double Galvan Ranch drilling locations this year. SM shares have twice the upside to our target as the group. SM trades at a 10% discount (’12E EBITDA), yet we believe it should generate ~40% greater CFPS growth (’11-’13E) than the sector. We project SM should spend ~40% beyond cash flow this year while the group outspends cash generation by ~30%."

For an analyst ratings summary and ratings history on St. Mary's click here. For more ratings news on St. Mary's click here.

Shares of St. Mary's closed at $76.81 yesterday, with a 52 week range of $53.45-$88.50.

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