Roth Capital Remains Bullish on SM Energy (SM) Following Civitas Announcement

SM Energy Company (NYSE:SM) is included in our list of the 12 deep value stocks to invest in.

On November 4, 2025, Roth Capital reduced its price target on SM Energy Company (NYSE:SM) from $33 to $28, while reiterating its “Buy” rating. The reduction in its price target incorporates the company’s $8 billion all-stock merger with Civitas Resources, which also includes debt. The firm revised its 2026 cash flow forecast downward by 4% following the company’s earnings release. However, it also revised the forecast upward by 2% post-merger as it sees the deal as strategically positive for future growth and scale.

On the previous day, SM Energy Company (NYSE:SM) reported Q3 2025 results. It reported a 26% YoY surge in production, taking it to 19.7 MMBoe, thanks to strong Uinta Basin output. Despite oil prices remaining low during the quarter, the company’s margins demonstrated resilience, enabling it to record $234.3 million in adjusted free cash flow, an 80% increase from 2024. The company recorded $811 million in revenue, representing an increase from $642 million in the same period a year earlier. Meanwhile, adjusted net income stood at $153.7 million, or $1.33 per diluted common share.

SM Energy Company (NYSE:SM), an independent oil and gas producer, explores for and develops crude oil, natural gas, and NGL assets in Texas and Utah.

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