Opinions
The Panic-Proof Portfolio (Stockchase Research)
SM Energy Company
SM-N
TOP PICK
Jan 14, 2025
$43.920
Stock price when the opinion was issued
Oil and Gas (Integrated Oils)
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TOP PICK
Stockchase Research Editor: Michael O'Reilly
SM is a Denver based oil and gas exploration company, who just acquired some key waxy crude in the Uinta basin, with rail connections to the Gulf Coast, in partnership with Crescent Point. It trades at 6x earnings, 1.3x book, and supports a 22% ROE. We recommend setting a stop-loss at $37, looking to achieve $55 -- upside potential of 20%. Yield 1.6%
(Analysts’ price target is $54.56)
Oil and Gas (Integrated Oils)
PAST TOP PICK
(A Top Pick Jan 14/25, Down 15.7%)Stockchase Research Editor: Michael O'Reilly
Our PAST TOP PICK with SM has triggered its stop at $37. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 17%, when combined with our previous guidance.
Oil and Gas (Integrated Oils)
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We reiterate SM as a TOP PICK. Partnering with Crescent Point, they are developing the very profitable waxy crude in the Uinta Basin. Rising cash flows have allowed the company to take on incremental debt to continue developing the region. It trades at 6x earnings, 1.2x book and supports a 22% ROE. We continue to recommend a stop at $37, looking to achieve $54.50 -- upside potential of 23%. Yield 1.6%
(Analysts’ price target is $54.56)