Where SM Energy Stands With Analysts

During the last three months, 4 analysts shared their evaluations of SM Energy (NYSE:SM), revealing diverse outlooks from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

	Bullish	Somewhat Bullish	Indifferent	Somewhat Bearish	Bearish
Total Ratings	0	2	2	0	0
Last 30D	0	1	0	0	0
1M Ago	0	0	1	0	0
2M Ago	0	1	1	0	0
3M Ago	0	0	0	0	0

The 12-month price targets, analyzed by analysts, offer insights with an average target of $42.25, a high estimate of $55.00, and a low estimate of $33.00. This current average has decreased by 23.18% from the previous average price target of $55.00.

Interpreting Analyst Ratings: A Closer Look

The standing of SM Energy among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Mike Scialla |Stephens & Co. |Lowers |Overweight | $55.00|$62.00 | |Hanwen Chang |Wells Fargo |Lowers |Equal-Weight | $33.00|$45.00 | |Zach Parham |JP Morgan |Lowers |Neutral | $41.00|$54.00 | |John Freeman |Raymond James |Lowers |Outperform | $40.00|$59.00 |

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to SM Energy. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of SM Energy compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of SM Energy's stock. This comparison reveals trends in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of SM Energy's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on SM Energy analyst ratings.

About SM Energy

SM Energy Co is an independent energy company engaged in the acquisition, exploration, development, and production of oil, gas, and NGLs in Texas and Utah. Its portfolio is comprised of assets in the Midland Basin of West Texas, the Maverick Basin of South Texas, and the Uinta Basin of northeastern Utah.

Unraveling the Financial Story of SM Energy

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: SM Energy's remarkable performance in 3M is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 37.74%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Energy sector.

Net Margin: SM Energy's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 22.53%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 4.54%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): SM Energy's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.27% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: With a high debt-to-equity ratio of 0.66, SM Energy faces challenges in effectively managing its debt levels, indicating potential financial strain.

How Are Analyst Ratings Determined?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.