Analyst Ratings For SM Energy

In the latest quarter, 11 analysts provided ratings for SM Energy SM, showcasing a mix of bullish and bearish perspectives.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $52.55, a high estimate of $65.00, and a low estimate of $42.00. Surpassing the previous average price target of $47.44, the current average has increased by 10.77%.

Exploring Analyst Ratings: An In-Depth Overview

The standing of SM Energy among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to SM Energy. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey 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.

Capture valuable insights into SM Energy's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with 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.

Breaking Down SM Energy's Financial Performance

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Decline in Revenue: Over the 3 months period, SM Energy faced challenges, resulting in a decline of approximately -9.32% in revenue growth as of 31 December, 2023. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, 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 lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 7.04%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): SM Energy's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.97% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: With a below-average debt-to-equity ratio of 0.44, SM Energy adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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