NEW YORK (TheStreet) -- Shares of SM Energy (SM) - Get Report were advancing in early-morning trading on Monday as Piper Jaffray boosted its rating on the stock to "overweight" from "neutral," the Fly reports.
The firm also raised its price target to $42 from $38 on shares of the Denver-based oil and natural gas company.
Piper cited an attractive valuation and the company's recent "transformational" Permian Basin acquisition, the Fly added.
Last week, SM Energy said it has agreed to acquire 24,783 net acres in Howard County, TX, expanding its Midland Basin footprint to about 46,750 net acres.
Additionally, oil prices were rising this morning. Crude oil (WTI) was gaining 1.91% to $45.34 per barrel and Brent crude was up 1.85% to $47.84 per barrel.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: SM