Petroleo Brasileiro SA Petrobras (PBR) Rating Lowered to Hold at Zacks Investment Research
Zacks Investment Research cut shares of Petroleo Brasileiro SA Petrobras (NYSE:PBR) from a buy rating to a hold rating in a research report report published on Monday morning.
According to Zacks, “ADRs of Petrobras have gained 49% over the last six months. This is also backed by encouraging earnings estimate revisions for 2018. The company's impressive portfolio of investments, particularly in Brazil’s pre-salt reservoirs will help it to maintain an impressive production growth profile for years to come. Reflecting that bullishness, the company recently unvieled its five year business plan which has also boosted our optimism on the stock. The company which is undertaking several successful measures to reduce its debts, targets to reduce its debt/EBITDA ratio to 2.5 in 2018. Petrobras’ cost improvement measures and divestment of non-core assets will likely help financials, thereby supporting earnings growth. We like Petrobras robust free cash flow performance which reflects its operational improvement. All these factors form the basis of our bullish stance on the stock.”
A number of other analysts have also recently commented on the stock. Credit Suisse Group set a $12.00 target price on shares of Petroleo Brasileiro SA Petrobras and gave the stock a buy rating in a research note on Monday, December 25th. ValuEngine cut shares of Petroleo Brasileiro SA Petrobras from a buy rating to a hold rating in a research note on Tuesday, November 21st. HSBC cut shares of Petroleo Brasileiro SA Petrobras from a buy rating to a hold rating in a research note on Tuesday, January 23rd. Societe Generale cut shares of Petroleo Brasileiro SA Petrobras from a buy rating to a hold rating and boosted their target price for the stock from $10.51 to $11.00 in a research note on Wednesday, October 18th. Finally, Barclays set a $10.00 price target on shares of Petroleo Brasileiro SA Petrobras and gave the stock a sell rating in a research report on Tuesday, October 10th. One investment analyst has rated the stock with a sell rating, eight have given a hold rating and three have given a buy rating to the company’s stock. The company has an average rating of Hold and an average target price of $11.73.
Petroleo Brasileiro SA Petrobras (NYSE:PBR) last released its earnings results on Tuesday, November 14th. The oil and gas exploration company reported $0.03 EPS for the quarter, missing analysts’ consensus estimates of $0.15 by ($0.12). The company had revenue of $22.70 billion for the quarter, compared to analysts’ expectations of $23.14 billion. Petroleo Brasileiro SA Petrobras had a return on equity of 4.17% and a net margin of 2.71%. research analysts forecast that Petroleo Brasileiro SA Petrobras will post 0.71 EPS for the current fiscal year.
Institutional investors and hedge funds have recently bought and sold shares of the stock. IHT Wealth Management LLC acquired a new position in Petroleo Brasileiro SA Petrobras during the second quarter worth about $103,000. D.A. Davidson & CO. boosted its position in Petroleo Brasileiro SA Petrobras by 276.6% during the second quarter. D.A. Davidson & CO. now owns 13,402 shares of the oil and gas exploration company’s stock worth $107,000 after acquiring an additional 9,843 shares during the last quarter. Quadrant Private Wealth Management LLC acquired a new position in Petroleo Brasileiro SA Petrobras during the fourth quarter worth about $123,000. KCS Wealth Advisory acquired a new position in Petroleo Brasileiro SA Petrobras during the fourth quarter worth about $136,000. Finally, Friedberg Investment Management acquired a new position in Petroleo Brasileiro SA Petrobras during the second quarter worth about $164,000. Hedge funds and other institutional investors own 5.58% of the company’s stock.
About Petroleo Brasileiro SA Petrobras
Petroleo Brasileiro SA-Petrobras specializes in the oil, natural gas and energy industry. The Company is engaged in prospecting, drilling, refining, processing, trading and transporting crude oil from producing onshore and offshore oil fields and from shale or other rocks. Its segments include Exploration and Production, which covers the activities of exploration, development and production of crude oil, natural gas liquid and natural gas; Refining, Transportation and Marketing, which covers the refining, logistics, transport and trading of crude oil and oil products activities, exporting of ethanol, and extraction and processing of shale; Gas and Power, which is engaged in transportation and trading of natural gas produced in Brazil and imported natural gas; Biofuels, which covers the activities of production of biodiesel and its co-products, and ethanol-related activities; Distribution, which includes the activities of its subsidiary Petrobras Distribuidora SA, and Corporate.
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