JPMorgan downgrades SM Energy on preference for natural gas

JPMorgan analyst Zach Parham downgraded SM Energy (SM) to Neutral from Overweight with a price target of $53, up from $51. The firm has become more selective on its oil-weighted names heading into 2025 given a preference for natural gas exposure. In addition, SM Energy’s near-term cash returns trail peers, the analyst tells investors in a research note. JPMorgan says SM ranks lower in its forced ranker compared to Smid cap oily peers.