SM Energy Company (SM)
by Zacks Equity ResearchJuly 20, 2012 | Comments : 0 Recommended this article: (0)
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Moreover, midstream disruptions in the Bakken and the Permian hindered output in April 2012, and are likely to put pressure on the company's output guidance. Other risks that could potentially impact the company's operations include a lack of service rig availability, dry holes, mechanical failures and adverse weather conditions.
Hence, we have downgraded our recommendation to Underperform from Neutral. Our $43 price objective reflects a multiple of 3.8x the trailing the 12-month cash flow.
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