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2 Stories Moving Petrobras Stock

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2 Stories Moving Petrobras Stock

Petroleo Brasileiro Petrobras SA (ADR) (NYSE: PBR) shares were up more than 2 percent on Tuesday after two stories are trending.

The first, in the analyst ratings world, concerns an upgrade from Bank of America, to Buy from Neutral. Others on Wall Street, like UBS, Cowen and GBM have all downgraded the stock over the past year.

Shares of the energy giant are down 40 percent since last April.

Related Link: Damodaran: How Low Can You Go? Doing The Petrobras Limbo!

The second story comes from ValueWalk, which reported on a recent strategy note from Bridgewater Associates published late last month.

“The company is vulnerable to a squeeze that puts it at a high risk of insolvency,” the firm noted, adding that “something needs to give soon."

According to ValueWalk, Bridgewater thinks a loosening commodity boom could harm borrowers in Brazil, force them to be reliant on foreign capital, and eventually put pressure on Petrobras derivatives.

There's one graphic, though, that tells the story. From the report:

bridgewater-4-14-petrobras-systematic.png

 

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