SM Energy price target raised to $51 from $45 at Wells Fargo

Wells Fargo raised the firm’s price target on SM Energy to $51 from $45 and keeps an Equal Weight rating on the shares ahead of quarterly results. The firm expects SM’s track record for beating quarter production guidance to continue in Q1. Wells’ forecast for Q1 total production of 144.6 mboe/d is ahead of quarterly guide of 144.3 mboe/d. The lighter activity cadence of Q4 2023/Q1 2024 is expected to pick up in Q2, with a peak in volumes expected to flow through in Q3. The firm sees potential upside to the second half of 2024 oil and total production and expects production to peak in Q4.