UPDATE: BMO Capital Markets Reiterates Outperform Rating, Raises PT on SM Energy
In a report published Monday, BMO Capital Markets reiterated its Outperform rating on SM Energy (NYSE: SM), and raised its price target from $60.00 to $65.00.
BMO Capital noted, “We are raising our estimates on higher production growth. Recent results give us more confidence a stable capital program can achieve double-digit growth within cash flow in 2014 while increasing oil/NGL mix to 50% of total production. We expect a ~$375mm cash flow outspend in 2013, which means SM will likely need to revisit the high yield market, but its leverage ratio should remain low at ~1.5x.”
SM Energy closed on Friday at $56.03.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.