Petrobras Brasileiro SA (PBR)

Petrobras (PBR - Analyst Report), the largest integrated energy firm in Brazil, stands to benefit from its country's economic growth and huge pre-salt oil reserves. The company recently reported a better-than-expected third-quarter, helped by strong downstream results that more than offset the sharp decline in commodity prices.

Near- to medium-term concerns include the uncertain commodity-price scenario, significant capital investment requirements, and Brazil's proposed new oil and gas regulatory framework. However, given its strong pipeline of development projects and impressive recent exploration successes, the company's long-term outlook looks compelling.

As such, we recommend an Outperform rating for Petrobras ADRs. Our six-month target price is $55 per share.

Petrobras Brasileiro SA (PBR) : FULL ANALYST REPORT

Email	Print	Share	RSS	Rate Pos	Rate Neg	Comment

Loading Stories...

Related Content

RELATED ARTICLES BULL OF THE DAY ARCHIVE

Zacks Blog: Near-term Outlook Positive for Cameron
(CAM, CVX, PBR)	02/04/10
Zacks Industry Rank Analysis: "Old" and "New" Energy Showing Improvement
(PBR)	01/26/10
Zacks Blog: FMC Tech in PBR Subsea Deal
(FTI, PBR)	01/21/10
Zacks Blog: Zacks Industry Outlook Highlights: Petrobras, PetroChina Company Limited, Cameron International, Nabors Industries and Patterson-UTI Energy
(PBR, PTR, CAM, NBR, PTEN)	01/21/10
PREMIUM: Zacks Analyst Interviews: Oil & Gas Stock Outlook - Jan. 2010
(PBR)	01/21/10

 Posting Comment...

There was a problem posting this this comment. Please try back later.
[CLICK TO CLOSE X]

Comments (Limit 1000 Characters - Used: 0)

Please provide your comments here... Display Name: Email Address:  

 Loading Comments...

Be the first to comment on this article!