In a report released today, Gabriel Daoud from TD Cowen maintained a Buy rating on SM Energy (SM – Research Report), with a price target of $60.00.
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Gabriel Daoud has given his Buy rating due to a combination of factors, primarily revolving around SM Energy’s promising production figures and financial outlook. The updated model considers the December Texas state data, which suggests a potential fourth-quarter performance that exceeds previous expectations. SM Energy’s oil production for the fourth quarter is estimated at 111.6 kbd, slightly above the Street’s forecast, indicating operational stability and efficiency.
Furthermore, despite possible rail issues in Uinta, production levels remain largely in line with market expectations, demonstrating resilience in their operations. The company’s financial metrics, such as adjusted EBITDA and free cash flow, are anticipated to be favorable, supporting a positive enterprise value yield. These elements collectively underpin Daoud’s confidence in SM Energy’s prospects, warranting a Buy rating based on strong production performance and financial stability.