Raymond James double downgraded SM Energy (SM) to Underperform from Outperform without a price target “As the geopolitical risk premium unwinds on oil, the fundamentals support an oil price closer to $60 per barrel, the analyst tells investors in a research note. The firm anticipates an extended period of time at that level absent geopolitical risks re-surfacing or OPEC reversing course. SM trades at similar multiple to its oily SMID-cap peers and the company’s leverage is also fairly similar to oily peers, contends Raymond James. However, the firm believes SM has a below average core inventory life in the Permian Basin, which “puts increasing pressure on the Uinta to fill the gap.”
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