The analysts wrote, “After yesterday’s close, Petrobras announced a 5% increase in Brazilian diesel prices received. While this readjustment does not include Brazilian state and federal taxes, this in an incremental positive for a company held back by downstream losses that have become an albatross for the stock. In effect, PBR subsidizes the Brazilian consumer by providing gasoline and diesel at prices so low that PBR’s quality upstream portfolio earnings (SGe $21billion for 2013) are overlooked when investors see PBR’s substantial downstream losses (SGe $8billion for 2013). The announcement today should help abate the losses and improve PBR’s downstream outlook as Brazilian demand for petroleum products continues to rise.”
Several other analysts have also recently commented on the stock. Analysts at TheStreet reiterated a “hold” rating on shares of Petroleo Brasileiro SA in a research note to investors on Friday, March 1st. Finally, analysts at Jefferies Group downgraded shares of Petroleo Brasileiro SA from a “buy” rating to a “hold” rating in a research note to investors on Wednesday, February 6th.
Shares of Petroleo Brasileiro SA traded up 12.97% during mid-day trading on Wednesday, hitting $16.37. Petroleo Brasileiro SA has a one year low of $14.40 and a one year high of $28.87. The stock’s 50-day moving average is currently $17.0. The company has a market cap of $106.8 billion and a P/E ratio of 9.09.
Petroleo Brasileiro S.A. (Petrobras) is an integrated oil and gas company. The Company operates in five segments: exploration and production; refining, transportation and marketing; distribution; gas and power, and international.
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