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.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorPrice TargetReiterationPre-Market OutlookAnalyst RatingsDeutsche Bank
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!