
SM Energy (SM) Stock Forecast & Price Target
SM Energy (SM) Analyst Ratings
Bulls say
SM Energy is a strong Buy due to their attractive valuation, with SM trading at a 26.3% free cash flow yield compared to the industry average of 14.7%. The company's recent divestiture of their South Texas assets will also help strengthen their balance sheet and increase shareholder returns, as they plan to use the proceeds to redeem outstanding debt and increase their fixed dividend by 10%. With an estimated 7 years of inventory in their Midland Basin assets and potential synergy capture of $200-300 million per year, SM Energy has a strong path for growth and profitability.
Bears say
SM Energy is transitioning into a three-core basin operator with a portfolio comprised of assets in the Midland Basin, DJ Basin, and Uinta Basin. However, challenges lie ahead as the company tests new areas and faces a potential decline in oil and natural gas prices, causing concern over the depth and quality of its drilling inventory. Additionally, the stock currently screens cheaper than its peers, but it will need to execute well on its portfolio transformation to re-rate and close the multiple gap.
This aggregate rating is based on analysts' research of SM Energy and is not a guaranteed prediction by Public.com or investment advice.
SM Energy (SM) Analyst Forecast & Price Prediction
Start investing in SM Energy (SM)
Order type
Buy in
Order amount
Est. shares
0 shares