SM Energy (SM – Research Report), the Energy sector company, was revisited by a Wall Street analyst today. Analyst Gabriele Sorbara from Siebert Williams Shank & Co reiterated a Buy rating on the stock and has a $34.00 price target.
Gabriele Sorbara has given his Buy rating due to a combination of factors, primarily focusing on SM Energy’s strong financial performance and valuation metrics. The company reported solid first-quarter 2025 results, surpassing expectations in key areas such as Discretionary Cash Flow per Share (DCFPS), EBITDA, and Free Cash Flow (FCF). Despite some concerns about lower-than-expected oil production growth in the Uinta region, the overall financial results were robust.
Additionally, Sorbara highlights the company’s attractive valuation compared to its peers. SM Energy trades at lower EV/EBITDA multiples for 2025 and 2026, making it an appealing investment opportunity. The reaffirmation of 2025 capital expenditure and production guidance, despite mixed second-quarter guidance, further supports the Buy rating. These factors combined suggest that SM Energy is well-positioned for future growth, justifying the positive outlook.
Sorbara covers the Energy sector, focusing on stocks such as Comstock Resources, Range Resources, and Diamondback. According to TipRanks, Sorbara has an average return of 17.6% and a 51.16% success rate on recommended stocks.
In another report released on April 21, KeyBanc also maintained a Buy rating on the stock with a $36.00 price target.