UPDATE: Pritchard Capital Markets Initiates Buy, $72 PT on SM Energy
Pritchard Capital Markets initiates its coverage on SM Energy (NYSE: SM) with a Buy rating and a price target of $70.
Pritchard Capital Markets notes, "SM had a solid year in 2011 and we anticipate the company will continue to post strong production growth in 2012, primarily driven by its Eagle Ford, Williston Basin, and Granite Wash assets. Additional upside exists from SM's Permian and DJ and Powder River Basin positions. The company has a balanced portfolio of assets that allows it to exploit liquids in the near term, with long term natural gas optionality as the majority of its dry gas assets are HBP. Based on our current assumptions, we calculated SM has an NAV of approximately $90, with the company's operated Eagle Ford position accounting for roughly 39% of the NAV."
SM closed at $53.61 on Wednesday.
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