SM Energy (SM) Valuation Update - Aug 8

[dan_s]

At the time of this post SM was trading at $43.24.

I have updated my forecast/valuation model for SM's outstanding Q2 results and fresh guidance. The Unita Basin Acquisition that is expected to close in early October is a major step change for SM and for NOG.

My valuation increases by $3 to $75/share.

TipRanks: "In the last 3 months, 10 ranked analysts set 12-month price targets for SM. The average price target among the analysts is $59.11".

This morning Gabriele Sorbara a 5-Star energy sector analyst at Siebert Williams Shank & Co increased his price target to $76.

Keep in mind that most of the Wall Street Gang will be conservative on the valuations of companies that are in the process of making large acquisitions.

SM is a very good operating company. NOG's relationship with SM is a positive for them.