Petroleo Brasileiro SA Petrobras (ADR) PBR hosted a meeting with sell-side analysts on June 10, as part of its efforts to strengthen the relationship with the market and discusses issues.
Credit Suisse’s Andre Natal mentioned four key changes the new management intends to implement:
- Reinforcement and extension of partnerships across the different business segments, using the E&P partnerships as a model
- Consolidation of professionalism in management actions, including capital allocation decisions
- Making fuel pricing a technical and routine activity
- Managing the corporate culture
Nothing Surprising
Analyst Andre Natal noted that the actions planned by Petrobas were in sync with what the company had already been implementing, and, therefore, the coming months would not be disruptive. In fact, the coming months could most likely “bring more changes beyond the previous structural moves.”
“One might disagree on specific issues, details, and the timing of some initiatives, but we get the sense that the market generally agrees with the overall trend,” the analyst wrote. He added that the recent share price rally already “priced in expectations of new disruptions and radical changes to come,” and the shares are therefore not attractive at this point.
Natal maintained an Underperform rating for the company, with a price target of $2.
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