KLR Group Upgrades SM Energy (SM) to Buy

August 9, 2016 10:43 AM EDT
Get Alerts SM Hot Sheet
Price: $35.44 -4.81%

Rating Summary:
    20 Buy, 14 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 21 | Down: 31 | New: 25
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KLR Group upgraded SM Energy (NYSE: SM) from Accumulate to Buy with a price target of $43.00 (from $37.00).

Analyst John Gerdes commented, "We are upgrading SM from Accumulate to Buy and increasing our target price $6 to $43 due to the accretive impact of greater Midland Basin focus manifest in the Howard County acquisition partially offset by the substantive component of equity financing. The company’s capital intensity should improve ~5%, while oil-directed capital spending increases ~2%. Further, SM’s mid-cycle (’18) capital yield (cash recycle ratio) is now positive at ~110% (industry median ~125%) and therefore no longer warrants an incrementally lower equity discount rate."

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 $31.06 yesterday.



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