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NEW YORK (TheStreet) -- SM Energy's (SM) - Get SM Energy Company Report stock price target was upped to $40 from $35 at BMO Capital Markets on Friday.

The firm has a "market perform" rating on shares of the Denver-based energy company.

BMO said that SM Energy's recent $980 million acquisition of Rock Oil earlier this month "positions it as a serious player" in the Permian Basin, which has become the primary U.S. oil basin.

The acquisition allows the company to expand in the Permian Basin while being accretive to future drilling returns and its debt-adjusted growth profile, the firm added.

SM Energy has "already proven to be a successful operator in the Midland," but the size of its operations there has given investors concern, BMO said in a note earlier today. The firm sees the company changing that view with the Rock Oil deal.

The company's stock closed lower on Friday amid mixed oil prices.

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Crude oil (WTI) was higher by 0.58% to $48.50 per barrel while Brent crude was declining 0.18% to $50.80 per barrel late this afternoon.

Separately, 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.

TheStreet Ratings rated this stock as a "sell" with a ratings score of D.

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.

You can view the full analysis from the report here: SM

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