financetom
Personal Finance
financetom
/
Personal Finance
/
Research Alert: CFRA Keeps Sell Opinion On Adss Of Petroleo Brasileiro S.a.
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Research Alert: CFRA Keeps Sell Opinion On Adss Of Petroleo Brasileiro S.a.
May 15, 2024 7:57 AM

10:30 AM EDT, 05/15/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target price of $14, up $1, reflects a 5.2x multiple of enterprise value to projected 2025 EBITDA, slightly below U.S. integrated oil peers, on concerns that weak capital allocation policies are on the horizon. We cut our 2024 earnings per ADS estimate by BRL1.36 to BRL17.48 and lift 2025's by BRL0.94 to BRL16.04. Q1 earnings per ADS of BRL3.65 vs. BRL5.85, missed consensus by BRL0.31. Shares are under pressure today, with Reuters noting that CEO Jean Paul Prates has been asked to step down by Brazil's President Lula. Prates is apparently being replaced by Magda Chambriard, former head of Brazil's energy agency ANP from 2012 to 2016. On the one hand, Chambriard has an engineering background, which we think is a plus. However, we believe the move stems from an effort by Lula to use PBR in a populist fashion, which runs the risk of 1) capital allocation into low-return project boondoggles, 2) lower dividend growth, and 3) renewed subsidies for refined products.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Taxable income: What it is, how to calculate it and how to reduce it
Taxable income: What it is, how to calculate it and how to reduce it
Mar 1, 2025
Taxable income directly affects how much you owe in taxes, so it pays to understand it. Knowing how to reduce your taxable income through, for example, deductible retirement contributions can lower your tax bill. Here's how to figure out what counts as taxable income, how it's calculated and steps you can take to reduce it. What is taxable income Taxable...
Best-performing energy stocks: March 2025
Best-performing energy stocks: March 2025
Mar 1, 2025
Energy stocks can be hot and cold, but when they're hot, they can move as quickly as any tech stock. And it's a popular sector to trade when oil prices skyrocket or geopolitical tensions ratchet up, as prices can become highly volatile and traders jump into the action. Because of that volatility, a list of the best performers won't tell...
What is a home equity loan?
What is a home equity loan?
Feb 27, 2025
Key takeaways A home equity loan allows you to borrow a lump sum against your home's equity, usually at a fixed interest rate that's lower than other forms of consumer debt. The amount you can borrow with a home equity loan is based on the current market value of your home, the size of your mortgage and personal financials like...
What is an inverted yield curve? And why does it matter for you
What is an inverted yield curve? And why does it matter for you
Mar 1, 2025
When policymakers and investors seek economic insight, they often use a tool called the yield curve. A yield curve measures the spread between yields on short- and long-term maturity bonds over time. It's plotted as a line on a graph, and the slope is sometimes used as a forecaster of economic growth. In a normal environment, longer-term bonds have often...
Copyright 2023-2025 - www.financetom.com All Rights Reserved