SM Energy Company's (NYSE:SM) Cash Flows to Trail Capex

SM Energy Company (NYSE:SM) will continue to be challenged by capex and cash flow, according to Jefferies, although they still raised their PT and EPS on the company.

Jefferies said, "cash flows should continue to trail capex as activity remains robust in the Eagle Ford and Williston. Ample borrowing capacity and asset sales should help plug the deficit."

They boosted their full year 2011 EPS estimate from $0.94 to $1.10, as earnings drivers should continue on. Jefferies introduced their full year 2012 EPS estimate at $1.52.

Jefferies maintains a "Hold" rating on SM Energy, which closed Wednesday at $59.02, gaining $2.98, or 5.32 percent. Jefferies also raised their price target on SM to $56.