
SM Energy (SM) Stock Forecast & Price Target
SM Energy (SM) Analyst Ratings
Bulls say
SM Energy Co demonstrated notable operational growth in 3Q24, with production increasing 11% quarter-over-quarter and 7% year-over-year, surpassing market consensus expectations. The company reported substantial enhancements in financial metrics, with estimated 2025 EPS and CFPS rising by 20-25%, coupled with a 40-45% increase in free cash flow per share, driven by a favorable commodity price environment. Additionally, SM Energy's competitive position in the Midland Basin, characterized by low break-even costs and efficient drilling practices, along with a commitment to returning capital to shareholders through increased dividends, underscores its strong financial health and positive outlook.
Bears say
SM Energy's stock outlook is negatively impacted by potential declines in oil and natural gas prices, which may lead to reduced near-term cash flow and EBITDA estimates. Additionally, subpar well results and operational execution, particularly in high-risk areas and delineation efforts in the Austin Chalk, could limit future growth opportunities and adversely affect stock performance. Furthermore, the company’s lowered adjusted EPS and CFPS estimates for 2024 and 2025, combined with tepid market responses to production guidance and the diminished perception as a potential acquisition target, contribute to the adverse sentiment surrounding its stock.
This aggregate rating is based on analysts' research of SM Energy and is not a guaranteed prediction by Public.com or investment advice.
SM Energy (SM) Analyst Forecast & Price Prediction
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