In a report released today, Gabriele Sorbara from Williams Capital reiterated a Buy rating on SM Energy (SM), with a price target of $32. The company’s shares closed yesterday at $19.69.
Sorbara observed:
“We have lowered our Midland Basin growth to 22.2% (from 33.8%). We have cut our 2019 capex esmat e to $1.04 billion for total producon growth of 7.3% and oil producon growth of 13.4%, which is slig htly above the top-end of oil producon guidance. We note that SM’s 2019 outlook includes 34 Lower Spraberry wells (up from 8 in 2018) which take longer to reach peak rates than Wolfcamp wells, thus providing less producon in 2019 but support to the 2020 producon profile.”
According to TipRanks.com, Sorbara has 0 stars on 0-5 star ranking scale with an average return of -8.7% and a 37.8% success rate. Sorbara covers the Basic Materials sector, focusing on stocks such as Gulfport Energy Corp, Extraction Oil & Gas, and Oasis Petroleum Inc.
Currently, the analyst consensus on SM Energy is a Strong Buy with an average price target of $29.14.
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Based on SM Energy’s latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $136 million. In comparison, last year the company had a GAAP net loss of $26.26 million.
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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.
