Susquehanna analyst Charles Minervino has revised the price target for SM Energy (SM, Financial), decreasing it from $39 to $24 per share, while maintaining a Neutral rating on the company's stock. This adjustment comes as the firm recalibrates its oil price forecasts, anticipating a drop to approximately $68 per barrel in 2025 and further down to $67 per barrel in 2026 and beyond.
The revision is largely influenced by reduced global demand projections, a consequence of new tariffs and increasing recession concerns, which have collectively pressured oil prices at the start of the second quarter. Additionally, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) are set to begin reversing their voluntary production cuts totaling 2.2 million barrels, starting in April. This move is expected to introduce a substantial amount of supply back into the global oil markets, further influencing prices.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for SM Energy Co (SM, Financial) is $42.43 with a high estimate of $58.00 and a low estimate of $33.00. The average target implies an upside of 92.68% from the current price of $22.02. More detailed estimate data can be found on the SM Energy Co (SM) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, SM Energy Co's (SM, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for SM Energy Co (SM, Financial) in one year is $54.10, suggesting a upside of 145.69% from the current price of $22.02. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the SM Energy Co (SM) Summary page.
