UPDATE: Oppenheimer Reiterates Outperform Rating, Lowers PT on SM Energy

In a report published Monday, Oppenheimer reiterated its Outperform rating on SM Energy

but lowered its price target from $92.00 to $65.00. Oppenheimer noted, “We reiterate our Outperform rating on SM shares, but are reducing our price target to $65 from $92 prior, to adjust for the weak performance YTD, and recently lowered production growth outlook. Our new target is based on 4x 2013E cash flow, compared to 4.5x peer group average. SM shares traded down sharply last week following weak 2Q12 earnings and a downward production revision, due to delays in midstream infrastructure in the Eagle Ford. SM is down 40% YTD, significantly below the peer average decline of 9%. Shares are currently trading at just 3.3x 2013E P/CF, 26% below the peer average, and with the bar reset for 2012, we believe the shares are attractive at the current level.” SM Energy closed on Friday at $44.07.