BUZZ-Stephens cuts PT on SM Energy on reduced activity and lower capex in 2026
Stephens has reduced its price target for SM Energy to $48 from $57, citing expected reduced drilling activity and lower capital expenditure in 2026. This new target still represents a 159.5% upside from the last closing price. The merger with Civitas Resources is seen as reducing the Net Asset Value per share, affecting valuation. Currently, 7 out of 13 brokerages rate the stock as a 'buy' or higher, with a median price target of $35.5.
Brokerage Stephens cuts price target on U.S.-based oil and gas firm SM Energy (SM.N) to $48 from $57
New price target represents a 159.5% upside to the stock’s last close
Earlier this month, SM Energy and Civitas Resources (CIVI.N) said they would merge in a $12.8 billion deal
Brokerage says SM expects less drilling activity and lower capex in 2026 compared to the combined 2025 levels of SM and CIVI
Brokerage says the merger reduces Net Asset Value (NAV) per share, which weighs on valuation
7 of 13 brokerages rate the stock “buy” or higher, 5 “hold” and 1 “sell”, media PT is $35.5 - data compiled by LSEG
Up to last close, shares down 52.3% YTD
