UPDATE: BMO Capital Markets Downgrades SM Energy Co. to Market Perform, Reiterates $65 PT on Limited Upside

In a report published Monday, BMO Capital Markets downgraded its rating on SM Energy Co.

from Outperform to Market Perform, and reiterated its $65.00 price target. BMO Capital Markets noted, “We are downgrading SM Energy to Market Perform from Outperform and maintaining our $65 per share target price, which is in line with our after-tax NYMEX net asset value estimate. Following the recent rally in the shares and after incorporating new disclosure around the company's Eagle Ford and Bakken assets, we view the shares as close to fair value with limited upside outside meaningful success in the Permian or other exploratory plays.” SM Energy Co. closed on Friday at $61.78.