** Brokerage Stephens cuts price target on U.S.-based oil and gas firm SM Energy SM.N to $48 from $57

** New price target represents a 159.5% upside to the stock's last close

** Earlier this month, SM Energy and Civitas Resources CIVI.N said they would merge in a $12.8 billion deal

** Brokerage says SM expects less drilling activity and lower capex in 2026 compared to the combined 2025 levels of SM and CIVI

** Brokerage says the merger reduces Net Asset Value $(NAV)$ per share, which weighs on valuation

** 7 of 13 brokerages rate the stock "buy" or higher, 5 "hold" and 1 "sell", media PT is $35.5 - data compiled by LSEG

** Up to last close, shares down 52.3% YTD

(Reporting by Varun Sahay in Bengaluru)

((Varun.sahay@thomsonreuters.com;))