Market Overview

UPDATE: Bank of America Upgrades Petrobras SA to Buy on Reduced Risk Following 1Q Earnings

Share:
Related PBR
Mid-Day Market Update: Monday's Top 10 Volume Stocks
Mid-Day Market Update: Wednesday's Top Volume Stocks
Reuters: Petrobras drags heels on Brazil fuel price policy (Seeking Alpha)

In a report published Monday, Bank of America analyst Frank McGann upgraded the rating on Petrobras SA (NYSE: PBR) from Neutral to Buy, and raised the price target from $23.00 to $28.00.

In the report, McGann noted, “We are upgrading Petrobras to Buy and raising our PO from...US$23.00 /R$22.50 for the non-voting ADR/local shares to US$28.00/R$27.50 to reflect reduced risk perceptions post stronger than expected first quarter earnings report and the approaching inflection point for both earnings and production that we expect to occur over the next several quarters. (1) Earnings are bottoming and set to enter period of growth; (2) 1Q13 eps came in ahead of est,, which should reduce risk for future results; (3) Production should grow from 2H13 and be among fastest vs. peers; (4) Political risk/reward looks more favorable; and (5) Valuation remains low in light of strong growth outlook.”

Petrobras SA closed on Friday at $18.03.

Latest Ratings for PBR

DateFirmActionFromTo
Jul 2015BarclaysMaintainsOverweight
Jun 2015HSBCUpgradesReduceHold
Jun 2015JP MorganUpgradesNeutralOverweight

View More Analyst Ratings for PBR
View the Latest Analyst Ratings

Posted-In: Bank of AmericaAnalyst Color Upgrades Analyst Ratings

 

Related Articles (PBR)

Get Benzinga's Newsletters