SM Energy price target raised to $62 from $51 at KeyBanc

KeyBanc analyst Tim Rezvan raised the firm’s price target on SM Energy to $62 from $51 and keeps an Overweight rating on the shares. SM’s ability to replace core inventory without diluting shareholders or stretching the balance sheet is noteworthy and KeyBanc believes the prolific and oily Dean wells in and around Klondike are a bullish harbinger of results from wells SM will turn to sales this year, suggesting improving capital efficiency, the analyst tells investors in a research note. The firm believes SM’s share price momentum this year can continue amid strong operational momentum and still-compressed valuations.