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.

CA (NASDAQ:CA) Hammered on Weak Cash Flow, Margins

Shares of CA Technologies (NASDAQ:CA) have been taking a beating today, as its q/q op margin is lower, as well as its estimated cash flow for the third quarter.

Also of note is a 1 percent increase in the backlog of the software company.

Even so, Jefferies finds them an interesting story, as the downside looks limited to them, and strong acquisitions could give them a revenue boost in the short term.

Jefferies lowered their full year 2011 and full year 2012 EPS estimates on CA from $1.97 and $2.04 to $1.95 and $2.16.

Interestingly, Jefferies maintains a "Buy" rating on CA, which was trading at $23.23, losing $2.13, or 8.40 percent, as of 2:22 PM EST. They also boosted their price target on CA from $24 to $28.