UPDATE: Morgan Stanley Reiterates Overweight Rating, Removes PT on Petrobras Following LT Size Definition

In a report published Wednesday, Morgan Stanley analyst Bruno Montanari reiterated an Overweight rating on

, but removed the $19.50 price target. In the report, Morgan Stanley noted, “Normalized results were slightly better than our model, but we focus on the LT strategic plan. By defining its optimum oil output size at 4.0Mbbl/d, PBR sends a message that capex will indeed peak in the medium-term, opening room for the market to see a path for free cash flow generation capacity.” Petrobras closed on Tuesday at $11.33.