SM Energy (SM – Research Report), the Energy sector company, was revisited by a Wall Street analyst today. Analyst Gabriele Sorbara from Siebert Williams Shank & Co reiterated a Buy rating on the stock and has a $53.00 price target.
Gabriele Sorbara has given his Buy rating due to a combination of factors impacting SM Energy’s financial performance and strategic positioning. Despite a 1Q24 production outlook that did not meet expectations, SM Energy presents as a particularly attractive investment among small-cap energy companies based on its valuation. This assessment is strengthened by the company’s capacity to exceed revenue estimates, with a set revenue target that surpasses both the analyst’s and consensus expectations.
Moreover, Sorbara identifies that although SM Energy’s capital expenditure for 2024 is higher than anticipated, signaling less efficiency, the planned capital deployment is aimed at funding a significant number of net completions. The increased capital expenditure reflects a strategic investment in the company’s future production capacity, particularly in the South Texas operations, which is a key area for SM Energy’s growth and operational focus. This strategic capital allocation supports the Buy rating, as it is seen as a positive move for the company’s future growth and shareholder value.
Sorbara covers the Energy sector, focusing on stocks such as Comstock Resources, SM Energy, and Callon. According to TipRanks, Sorbara has an average return of 10.1% and a 46.44% success rate on recommended stocks.
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SM Energy (SM) Company Description:
SM Energy Co. is an independent energy company, which is engages in the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids. Its operations are located in South Texas and Gulf Coast, Rocky Mountain, and Permian regions. The company was founded in 1908 and is headquartered in Denver, CO.
Read More on SM:
- Sm Energy Company Enhances Board with New Director Brookman
- SM ENERGY REPORTS 2023 RESULTS AND 2024 OPERATING PLAN
- SM Upcoming Earnings Report: What to Expect?
- SM ENERGY REPORTS PRODUCTION BEAT ON LOWER CAPITAL COSTS AND SCHEDULES YEAR-END 2023 EARNINGS RELEASE AND CALL
- SM Energy upgraded to Buy from Neutral at Seaport Research
