SM Energy Company (NYSE:SM) is one of the best under-the-radar stocks to buy according to hedge funds.
On February 19, Stephens increased its price target on SM Energy Company from $48 to $49 and maintained an Overweight rating on the stock.
According to Stephens, the company’s decision to divest 61,000 net acres and production of 38 MBoepd in the Eagle Ford region for $950 million is a positive step. This deal is expected to close in the second quarter of 2026. SM Energy Company said it plans to use the proceeds mainly to reduce debt. The firm also noted that the company has nearly reached its $1 billion divestiture target in less than half the time it initially expected.
Separately, on February 18, Roth Capital also raised its price target on SM Energy Company from $23 to $24 and kept its Buy rating on the stock. Roth Capital’s analyst told investors in a research note that the firm remains optimistic about SM Energy Company, pointing to its discounted valuation compared with peers and potential upside from the Austin Chalk and Uinta plays.
SM Energy Company is an independent American energy company focused on the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids.
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