Stephens cuts PT on SM Energy on reduced activity and lower capex in 2026

Civitas Resources

26/11/2025 12:50

** Brokerage Stephens cuts price target on U.S.-based oil and gas firm SM Energy SM.N to $48 from $57

     ** New price target represents a 159.5%  upside to the stock's last close

     ** Earlier this month, SM Energy and Civitas Resources CIVI.N said they would merge in a $12.8 billion deal

     ** Brokerage says SM expects less drilling activity and lower capex in 2026 compared to the combined 2025 levels of SM and CIVI

     ** Brokerage says the merger reduces Net Asset Value (NAV) per share, which weighs on valuation

     ** 7 of 13 brokerages rate the stock "buy" or higher, 5 "hold" and 1 "sell", media PT is $35.5 - data compiled by LSEG

     ** Up to last close, shares down 52.3% YTD

 (Reporting by Varun Sahay in Bengaluru)

 ((Varun.sahay@thomsonreuters.com;))