SM Energy Upgraded to Outperform Amid Rising Oil Prices
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 23 2026
0mins
Source: CNBC
SM Energy Co's stock fell by 5.02% as it crossed below the 5-day SMA, despite positive market conditions with the Nasdaq-100 and S&P 500 both up.
Raymond James upgraded SM Energy's rating from Underperform to Outperform, setting a price target of $55. The upgrade is attributed to the company's significant debt reduction of approximately $700 million following its merger with Civitas, which is expected to enhance financial stability and leverage below 1x by Q4. Analysts also foresee further shareholder return opportunities in 2026-27, assuming steady production performance.
The upgrade reflects strong market confidence in SM Energy, particularly as it benefits from rising oil prices linked to the Iran war, positioning the company favorably for future growth.
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Analyst Views on SM
Wall Street analysts forecast SM stock price to fall
8 Analyst Rating
4 Buy
4 Hold
0 Sell
Moderate Buy
Current: 31.160
Low
23.00
Averages
30.00
High
42.00
Current: 31.160
Low
23.00
Averages
30.00
High
42.00
About SM
SM Energy Company is an independent energy company engaged in the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids (NGLs) in Colorado, New Mexico, Texas and Utah. The Company's Permian Basin assets cover approximately 250,000 net acres. The Permian Basin is a large sedimentary basin in western Texas and southeastern New Mexico, United States, noted for its petroleum, natural gas, and potassium deposits. The Company's South Texas assets combine the prolific Eagle Ford natural gas play with the high liquids content Austin Chalk. Located in far South Texas, the Maverick Basin is a Cretaceous-aged foreland basin. Located predominantly in the core, over-pressured oil window of the region, the Uinta Basin adds substantial scale with approximately 63,300 net acres and high oil-content production. The Company's Denver–Julesburg (DJ) Basin assets span approximately 238,000 net acres.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- SM Energy Dividend: SM Energy's Board approved a cash dividend of $0.22 per share, to be paid on June 22, 2026, to shareholders of record as of June 8, 2026, reflecting the company's efforts in maintaining stable cash flow.
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- Record Date for Shareholders: The dividend will be paid to shareholders of record as of the close of business on June 8, 2026, ensuring timely returns for shareholders and reflecting the company's commitment to shareholder interests.
- Operational Excellence: SM Energy operates across four leading U.S. shale basins, including the Permian, DJ, South Texas, and Uinta Basins, focusing on enhancing operational efficiency and disciplined capital allocation to achieve sustainable growth in shareholder returns.
- Transparency in Communication: The company routinely posts important information on its website, ensuring that investors can access the latest updates promptly, thereby enhancing market trust and transparency regarding the company's operations.
See More
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- Style Scoring System: The Zacks Style Scores evaluate stocks based on value, growth, and momentum characteristics, assigning ratings from A to F, which helps identify stocks with the potential to outperform the market over the next 30 days, thus enhancing the effectiveness of investment strategies.
- Strong Earnings Outlook: SM Energy Company holds a #2 (Buy) rating in the Zacks Rank with a VGM Score of A, and its stock has risen 17.3% over the past four weeks, indicating strong momentum and market confidence.
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- Borr Drilling's Stock Plunge: Borr Drilling (BORR) fell 16% after missing revenue expectations, exacerbating the decline in the high-beta sector, indicating increased market sensitivity to oil price fluctuations.
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- Charity Golf Tournament: Kicking off the event, a charity golf tournament will be held on August 17, requiring a $150 donation to participate, with proceeds supporting inclusive higher education for students with intellectual disabilities, highlighting the conference's commitment to social responsibility.
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