SM Energy Company (NYSE:
SM) is one of the
deep value stocks to buy according to analysts. On July 31, TD Cowen analyst David Deckelbaum reaffirmed a Buy rating on SM Energy and set a $42 price target. He pointed to the company’s strong second-quarter results, where production reached record levels and came in about 5% ahead of expectations, helped by solid well performance in the Uinta and Austin Chalk regions.
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Lower cash costs provided an additional boost, offsetting softer pricing and driving a sharp financial beat, including free cash flow that was substantially above consensus. Deckelbaum also noted that SM Energy reduced debt by roughly $140 million during the quarter, reinforcing balance sheet strength.
Looking ahead, management raised its oil production forecast while maintaining stable guidance for the rest of the year. These operational and financial improvements support the analyst’s positive stance on the stock.
SM Energy Company (NYSE:SM) is an independent oil and gas producer focused on acquiring, developing, and operating crude oil, natural gas, and NGL assets, primarily in Texas and Utah.
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Disclosure: None. This article is originally published at
Insider Monkey.
