Wall Street analysts ratings for SM Energy
Currently, ~33% of Wall Street analysts rate SM Energy (SM) as a “buy” and ~67% of analysts rate it as a “hold.” There is no “sell” recommendation on the stock. The median price target from these recommendations is $25.60, which is ~12% lower than the company’s May 3, 2016, closing price of $29.06.
Based on the median price targets of recommendations from Wall Street analysts, upstream companies QEP Resources (QEP), Continental Resources (CLR), and Carrizo Oil & Gas (CRZO) have potential upsides of ~16%, ~1%, and ~10%, respectively, from their May 3, 2016, closing prices.
Carrizo Oil & Gas has the advantage of higher operating margins per boe compared to its peers. The SPDR S&P Oil and Gas Exploration & Production ETF (XOP) generally invests at least 80% of its total assets in oil and gas exploration companies. The Vanguard Energy ETF (VDE) invests in the broader energy market.
SM Energy’s individual recommendations
As shown in the above table, the most recent recommendation of “market perform” comes from BMO Capital Markets, which was issued on May 3, 2016. BMO Capital Markets assigned SM Energy the target price of $30.00, which is ~3% higher than its May 3, 2016, closing price of $29.06. BMO Capital Markets did not mention any target date for the target price.
SM Energy’s lowest target price
The lowest target price for SM Energy comes from Piper Jaffray. It assigned SM Energy the target price of $18.00, which is ~38% lower than the May 3 closing price of $29.06. Piper Jaffray issued its SM Energy recommendation on May 3, 2016, and expecting it to reach the target price within 12 months of the date of recommendation.