Bank of America Merrill Lynch Has Buy on SM Energy

Bank of America Merrill Lynch is out with a research report on SM Energy (NYSE: SM) and it has a Buy rating and a $83 price objective.

In a note to clients, Bank of America Merrill Lynch writes, "We expect results from several emerging resource plays, most notably the Eagleford shale, to drive a meaningful shift in St. Mary's long-term growth prospects. St. Mary's discount to the group should narrow as drilling validates emerging play concepts and expands the depth of the company's inventory. Key drivers include: well results from the Eagleford, Haynesville, Bakken, Granite Wash, and Marcellus."

Shares of SM closed at $82.91.