UPDATE: Deutsche Bank Raises PT to $108 on SM Energy

Deutsche Bank maintains its Buy rating on SM Energy SM and raises its target price $3 to $108 following the company's inventory update. Deutsche Bank says, "A common critique of SM has centered around a lack of disclosure on its core asset, the Eagle Ford, and the well inventory it contains. With this update, SM has answered, providing its most in-depth disclosure to date. We see a path to ~1200 wells in the play, with 51% liquids content and EURs of 850mboe; this represents a 12-13 year inventory. Furthermore, execution on this inventory can drive the company to over 50% liquids by '13, from 35% in '10. With this shift comes tremendous cash flow, while SM grows cheaper at only 3.2x '13 EBITDAX." SM closed at $79.35 yesterday.