SM Energy upgraded to Outperform from Underperform at Raymond James

Raymond James double upgraded SM Energy (SM) to Outperform from Underperform with a $55 price target SM has been one of the biggest beneficiaries of the move higher in oil prices, the analyst tells investors in a research note. The firm says that despite the rally in shares, its bullish oil outlook relative to current strip “still provides plenty of upside potential.” SM’s “oil-driven cash flow windfall” has allowed the company to “clean” its balance sheet, contends Raymond James. The firm now sees the company’s leverage falling below one-times by Q4.