Credit Suisse Feels More Positive On Petroleo Brasileiro Petrobras SA
In a report published Monday, Credit Suisse analyst Vinicius Canheu reiterated a Neutral rating and $14.00 price target on Petroleo Brasileiro Petrobras SA (NYSE: PBR).
In the report, Credit Suisse noted, “On Friday PBR hosted a meeting with top management to discuss the surplus ToR volumes. We came out more positive than we went in, with PBR strongly defending a bullish view of the transaction. PBR affirmed it secured 10-15bn bbls of highly appraised resources, with 12 wells tested of 17 wells drilled in the area, with little incremental stretch on its balance sheet (the $2bn bonus plus the R$13bn government advances are only c.3% of the company's 5-year budget). We were convinced by the technical arguments and can see IRRs of c.17% for the deal under good execution. We make earnings changes to update FX, results and recent production data.”
Petroleo Brasileiro Petrobras SA closed on Friday at $14.63.
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