How To Play Petrobras Now?

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We had recently done a story on what was driving shares of Petroleo Brasileiro Petrobras SA (ADR) PBR in which CNBC's Fast Money Halftime Report trader Josh Brown had made a bullish case for the stock and also suggested a trade. With Citi upgrading the stock to a Buy today, Josh Brown is sticking with his bullish call and expects the stock to continue its upward ride in the future.

 

“Let’s keep in mind a couple of things and this is why it’s so tough to follow analysts’ call on the Street, really really interesting. This Citigroup call where they raised it from a neutral to a buy, at the same time they are cutting their target from 17 to 13, so in another words, they had this thing at neutral at 8 bucks with a target that was 100% above where it was trading,” Brown said.

 

“In the meantime UBS cut it a week ago, the stock is up 25% since then and they had been with a Buy rating the entire way down. So, the thing with names like these, focus on technicals, don’t listen to price targets and when you see the selling dry up, doesn’t mean it’s a bottom, but it’s a nice place to take a shot on it.”

 

When asked about what advice he’ll give to traders who had bought the stock when he had recommended it earlier, Brown said, “I think if you are a short-term trader, this thing opened up at 11 and a quarter and promptly sold off, may be you have seen a lot of short covering already, maybe now is a good time to exit […],”

 

Shares of Petrobras were recently trading at $10.39, down -1.05%. 

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Posted In: CNBCMedia
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