Opinions Christine Poole
Petroleo Bras Sa PetroPBRCOMMENTFeb 12, 2013
Stock price when the opinion was issued
As of Jun 05, 2026. Market Open.
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Premium contentOur PAST TOP PICK with PBR has triggered its stop at $13.50. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 3%, when combined with our previous guidance.
Premium contentPremium contentWe reiterate PBR, Brazil's national energy producer as a TOP PICK. Quarterly cash flows reveal that the company is once again building reserves, while continuing to pay down debt. It trades at 5x earnings, 1.2x book and supports a 22% ROE. The dividend yield is supported by a payout ratio of 55% of cash flows. We continue to recommend a stop at $12, looking to achieve $17 -- upside potential of 23%. Yield 7.4%
(Analysts’ price target is $16.96)Premium contentPetrobras (PBR) is the national energy company of Brazil. The company released its strategic plan to 2050 and it emphasizes a renewed growth in capital projects along with a large distribution to share holders ($55 bn by 2029). It trades at 6x earnings, 1.2x book and supports a 29% ROE. We like that cash reserves are growing. The healthy dividend is backed by a payout ratio under 60% of cash flow. We recommend setting a stop-loss at $12, looking to achieve $18 -- upside potential over 25%. Yield 6.5%
(Analysts’ price target is $18.24)
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Big Brazilian oil producer and has a lot of growth plans to develop some offshore drilling projects. Her preference in energy is to play the smaller and intermediate domestic producers that have very good land positions in Western Canada and that pay a dividend.