- SM Energy (SM -1%) is upgraded to Outperform from Neutral with a $110 price target, up from $88, at Robert W. Baird following SM's positive Permian update and disclosure of an additional 53.5K net acres in the play.
- Baird now believes shares should trade more in line with its Permian-focused peers on an EV/EBITDA basis; they currently trade at a 46% discount, the firm says.
- SM has built critical scale in the basin and given peer activity, the firm is confident that successful de-risking will drive multiple expansion over the next 12 months.
SM Energy upgraded at Baird following positive Permian update
Oct 31 2013, 11:54 ET