SM Energy initiated with a Hold at Truist

Truist initiated coverage of SM Energy with a Hold rating and $51 price target. The company has a strong balance sheet though its free cash flow generation remains moderate likely due to the less than 50% oil weighting and more recent modest Midland results, the analyst tells investors in a research note. The firm believes SM will look to add more assets “but could potentially turn to a sale if nothing significant materializes.”