Analysts at Deutsche Bank Securities keeps BUY rating on the shares of SM Energy (NYSE: SM). The 12-month target price is set to $112.
In a research note published this morning, the analysts mention that with better than expected oil volumes and outstanding cost control only overshadowed by weak differentials, the overriding bear thesis of a divestiture driven mix-shift towards gas in Q1 ended up feeling a bit like 'Y2K'. Whereas, 20percent discount of stock to its peers seems to imply an unlikely coming cut to 2012 numbers. It is believed that continued operational execution to drive share outperformance going forward.