SM Energy (SM) Declines After a Rating Downgrade

The share price of SM Energy Company (NYSE:SM) fell by 10.42% between June 18 and June 25, 2025, putting it among the Energy Stocks that Lost the Most This Week.

SM Energy (SM) Declines After a Rating Downgrade

A row of massive oil rigs in a desert landscape, against a setting sun.

SM Energy Company (NYSE:SM) is an independent energy company focused on the exploration, exploitation, development, acquisition, and production of natural gas and crude oil in the United States.

SM Energy Company (NYSE:SM) declined this week after Raymond James analyst John Freeman double downgraded the stock from ‘Outperform’ to ‘Underperform’, without stating a price target. The downgrade comes on the back of lower oil prices and inventory concerns.

The analyst mentioned that as the geopolitical risk premium unwinds on oil, the fundamentals support an oil price closer to $60 per barrel for an extended period, unless geopolitical risks resurface or OPEC changes course from its internal price war.

Raymond James highlighted that SM Energy Company (NYSE:SM) has a below-average core inventory life in the Permian Basin, which ‘puts increasing pressure on the Uinta to fill the gap.’

As of the writing of this piece, SM Energy Company (NYSE:SM) has fallen by more than 38% since the beginning of 2025.

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