Analysts’ Pre-Results Recommendations for Petrobras



Analyst recommendations for Petrobras

In this series, we’ve looked at Petrobras’s (PBR) 2Q16 estimates, segment analysis, and stock performance ahead of its earnings release expected on August 4, 2016. In this part, we’ll look at analysts’ ratings for Petrobras.

The above table shows that only one of the 11 firms has rated Petrobras (PBR) a “buy.” The highest 12-month price target for PBR stands at $9.50, indicating a 12% gain from the current levels. Another five firms have rated Petrobras (PBR) a “hold.” The average 12-month price target for Petrobras is $5.80, indicating a 32% loss from the current levels. The remaining five firms have rated PBR as “sell.” The lowest 12-month price target for PBR is $2, indicating a 76% loss from the current levels.

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The highest price target was set by Morgan Stanley. The lowest price target came from Credit Suisse. JPMorgan Chase, Société Generale, and Barclays gave targets equal to or exceeding $7 per share. Credit Suisse, Goldman Sachs, and Macquarie gave “sell/cautious” or “underperform” recommendations on the stock.

Analyst recommendations for PBR’s peers

Petrobras’s (PBR) peers Statoil (STO), PetroChina (PTR), and YPF (YPF) have “buy” ratings from 33%, 25%, and 90% of analysts surveyed, respectively. If you’re looking for broad-based exposure to energy sector stocks, you could consider the Vanguard Energy ETF (VDE). The ETF has a ~40% exposure to integrated energy sector stocks. VDE also has a ~27% exposure to the oil and gas exploration sector and an ~8% exposure to oil and gas refining sector stocks.


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