SM Energy has seen its shares surge 84% this year, driven by increased crude oil prices, which have risen 76% in 2026 amid concerns over supply due to the U.S.-Iran war. Raymond James analyst John Freeman noted that despite the stock's impressive performance, there remains substantial upside potential, with a price target set at $55.
This upgrade comes as SM Energy benefits from a cash flow boost that has allowed it to significantly reduce its debt by approximately $700 million following its merger with Civitas Resources. Freeman anticipates that the company's leverage will fall below 1x by the fourth quarter, enhancing its financial stability.
This optimistic outlook contrasts with the broader market sentiment, where only six out of 14 analysts recommend buying the stock, while seven suggest holding it