BMO Capital analyst Phillip Jungwirth raised the price target on SM Energy (NYSE: SM) to $33.00 (from $26.00) while maintaining a Market Perform rating.

The analyst commented: "We're updating SM estimates following a 1Q mark-to-market and catch-up with the company. We expect an in-line operational quarter, while 1Q FCF is weighed down by one-time integration charges and higher pro forma activity. FCF and production cadence improve in 2Q/2H26, while higher commodity prices accelerate de-leveraging goals. Our target price increases to $33 on the improved macro. The South Texas divestiture closes this month, while we'd expect additional PDP pruning. Shares are inexpensive, while we think successful Civitas integration, debt paydown, and inventory extension are necessary to improve valuation."