Global Hunter Securities Starts SM Energy (SM) at Buy, Lots of Visibility and Upside

October 22, 2012 8:57 AM EDT Send to a Friend
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Price: $46.82 -1.78%

Rating Summary:
    19 Buy, 10 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 7 | Down: 20 | New: 27
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Global Hunter Securities initiates coverage on SM Energy (NYSE: SM) with a Buy. PT $70.00.

The firm comments, "We like SM Energy (SM) for three principal reasons. First, its 283,000 net acres in the US's two premier oil/liquids-rich shale plays (Eagle Ford and Bakken) provide a tremendous amount of development visibility and reliable growth over the next five years. Second, SM arguably has the most irons in the fire in terms of resource play concepts it is currently testing; many times the biggest incremental driver to a company's NAV isn’t in your excel spreadsheet, and we feel SM has the technical talent and strategy to repeat the success it has achieved over the last five years with its early resource capture business model. Third, valuation – SM is trading for 4.3x 2013E EV/EBITDAX vs. our universe at 4.6x, while poised to outpace its peers in terms of both production and NAV growth."

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 $56.51 yesterday.

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