SM Energy price target lowered to $38 from $45 at RBC Capital

RBC Capital lowered the firm’s price target on SM Energy (SM) to $38 from $45 and keeps a Sector Perform rating on the shares ahead of its Q1 results. The company remains committed to its budget and allocation to “oily” activity in the Uinta and Permian, and the firm expects production to trend toward the upper-end of guidance, the analyst tells investors in a research note. SM has an attractive value proposition with significant potential upside and a positive rate of change under a favorable commodity price environment, RBC adds.