Key Takeaways From SM Energy Analyst Ratings

During the last three months, 8 analysts shared their evaluations of SM Energy SM, revealing diverse outlooks from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $48.88, a high estimate of $57.00, and a low estimate of $42.00. Marking an increase of 2.2%, the current average surpasses the previous average price target of $47.83.

Interpreting Analyst Ratings: A Closer Look

In examining recent analyst actions, we gain insights into how financial experts perceive SM Energy. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to SM Energy. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of SM Energy compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for SM Energy's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

For valuable insights into SM Energy's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on SM Energy analyst ratings.

All You Need to Know About SM Energy

SM Energy Co is an independent energy company engaged in the acquisition, exploration, development, and production of crude oil and condensate, natural gas, and natural gas liquids. Operating primarily out of the United States, the company actively participates in joint ventures, prospects/leaseholds, and drill-to-earn opportunities. The majority of the company's revenue is derived from some of the United States' premier drilling locations. Drilling location interests have been traditionally obtained through oil and gas leases from third parties. SM Energy relies on its fleet of geologists, geophysicists, landmen, and engineers to help extract the full potential out of all properties held.

SM Energy: Delving into Financials

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Challenges: SM Energy's revenue growth over 3 months faced difficulties. As of 31 December, 2023, the company experienced a decline of approximately -9.32%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Energy sector.

Net Margin: SM Energy's net margin is impressive, surpassing industry averages. With a net margin of 40.72%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): SM Energy's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 7.04%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): SM Energy's ROA stands out, surpassing industry averages. With an impressive ROA of 3.97%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: SM Energy's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.44.

Understanding the Relevance of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.