Investors should take hold of SM Energy ahead of its earnings report, according to TD Cowen.
Analyst Gabe Daoud upgraded his rating on the stock to buy from hold.
Heading into its third-quarter results at the end of the month, Daoud expects the company to beat Wall Street's expectations.
"SM remains a technical leader in the Midland Basin with '23 oil productivity ranking first among operators and '24 not far behind," Daoud said.
On top of that, he noted that return-of-capital initiatives, such as dividend increases or share buybacks specifically, could drive more upside.
Persons:
TD Cowen, Gabe Daoud, Daoud
Organizations:
SM Energy, bbl, Midland &, SM
Locations:
Klondike, Texas –, Uinta, Utah, Midland, Midland & South Texas