6 Analysts Assess SM Energy: What You Need To Know

During the last three months, 6 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 assessed by analysts reveal further insights, featuring an average target of $47.17, a high estimate of $57.00, and a low estimate of $40.00. Experiencing a 10.44% decline, the current average is now lower than the previous average price target of $52.67.

Decoding Analyst Ratings: A Detailed Look

The perception of SM Energy by financial experts is analyzed through recent analyst actions. The following summary presents 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: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of SM Energy compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for SM Energy's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of SM Energy's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on SM Energy analyst ratings.

Discovering SM Energy: A Closer Look

SM Energy Co is an independent energy company engaged in the acquisition, exploration, development, and production of oil, gas, and NGLs in Texas and Utah. Its portfolio is comprised of assets in the Midland Basin of West Texas, the Maverick Basin of South Texas, and the Uinta Basin of northeastern Utah.

Key Indicators: SM Energy's Financial Health

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: SM Energy displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 37.74%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Energy sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 22.53%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): SM Energy's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.54% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): SM Energy's ROA excels beyond industry benchmarks, reaching 2.27%. This signifies efficient management of assets and strong financial health.

Debt Management: SM Energy's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.66, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

How Are Analyst Ratings Determined?

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.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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