Josh Brown Explains How To Play Petrobras
A story recently mentioned what Josh Brown said was driving shares of Petroleo Brasileiro Petrobras SA (ADR) (NYSE: PBR), where Brown made a bullish case for the stock and also suggested a trade. With Citi upgrading the stock to a Buy on Tuesday, 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're cutting their [price] target from 17 to 13, so in another words, they had this thing at neutral at 8 bucks with a target that was 100 percent above where it was trading," Brown said.
"In the meantime UBS cut it a week ago. The stock is up 25 percent 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're a short-term trader, this thing opened up at 11 and a quarter and promptly sold off, maybe you have seen a lot of short covering already, maybe now is a good time to exit."
Shares of Petrobras closed Tuesday at $10.39, down 1.05 percent.
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