Investor Insights

This summary was created by AI, based on 1 opinions in the last 12 months.

Petrobras (PBR) is the national energy company of Brazil, and their strategic plan to 2050 emphasizes renewed growth in capital projects and large distributions to shareholders. With a low P/E ratio and strong return on equity, the company's cash reserves are also growing, supporting a healthy dividend backed by a reasonable payout ratio. Analysts recommend a stop-loss at $12 with a target of $18, indicating a potential upside of over 25%.

Consensus
Positive
Valuation
Undervalued
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

Petrobras (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)
Oil and Gas (Integrated Oils)
SELL

Despite trading at 6x PE, this has run up too much.

Oil and Gas (Integrated Oils)
Unspecified

The CEO was replaced by the government. It has a good sized resource base so there is upside in spite of the political risk.

Oil and Gas (Integrated Oils)
DON'T BUY

He's worried about PBR, because Chile just nationalized all its lithium businesses.

Oil and Gas (Integrated Oils)
DON'T BUY

Given its yield and growth rate, you'd buy this, but PBR is in Brazil and that matters. Can't trust it at all.

Oil and Gas (Integrated Oils)
DON'T BUY
Concerns about management independence. Stay away. Political uncertainty is way too high.
Oil and Gas (Integrated Oils)
Unspecified
It is an important global producer of light sweet crude oil which is better for the environment. It has become a better company over the years and is 51% owned by the Brazilian government. Should be OK if oil prices stay higher. Also does refining and marketing at local levels. Part of the question was on the 30% dividend yield. Dividends in a company like this are not handled the same way as dividends from North American companies. Look at the payout ratio and consistency as well as how profits are paid out.
Oil and Gas (Integrated Oils)
DON'T BUY
If you see where you can buy oil & gas stocks, Brazil probably isn't the most stable place. He'd recommend sticking closer to home and not run into geopolitical issues.
Oil and Gas (Integrated Oils)
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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick May 27/21, Up 0%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with PBR has triggered its stop at $9.60. We recommend covering the balance of the position at this time. Combined with the previous recommendation to cover half, this results in a net investment return of 12%.
Oil and Gas (Integrated Oils)
BUY
In Brazil, the currency is to be improved upon--that's the whole story. Pays good dividends.
Oil and Gas (Integrated Oils)
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick May 27/21, Up 25.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with PBR has achieved its $12 objective. To be disciplined, we recommend covering 50% of the position and trailing up the stop (from $7.00) to $9.60 -- just above the original recommended entry level. If triggered, this would all but guarantee a net investment return over 12%.
Oil and Gas (Integrated Oils)
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly PBR is Brazil's national oil company. It is the producer of some of the most prolific offshore reserves in the world. It pays a good dividend, backed by a payout ratio of 65%. It trades at 6x earnings, compared to peers at 25x and is trading right near book value. A good holding for global oil prices being sustained and an emerging market play. We would buy this with a stop loss at $7.00, looking to achieve $12 -- upside over potential of 20%. Yield 2.98% (Analysts’ price target is $11.83)
Oil and Gas (Integrated Oils)
COMMENT

She is light in oil, because the US shale producers have come back a lot faster in terms of production. That is more than offsetting whatever OPEC is doing on the cutting side. This company is very inexpensive, and has great assets. Management has laid out a plan to divest non-core assets, pay down some debt and right size their balance sheet. If you have a long-term time horizon, this is a good risk/reward. There is some near-term noise around Brazil, which will be a bit of a headwind.

Oil and Gas (Integrated Oils)
COMMENT

You can’t really talk about this without talking about Brazilian politics. This company has very, very extensive resources. Unfortunately, they also have a lot of debt. A very levered play on oil prices, and a small move in oil will result in a big move in this company.

Oil and Gas (Integrated Oils)
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Petroleo Bras Sa Petro(PBR-N) Rating

Ranking : 1 out of 5

Bullish - Buy Signals / Votes : 0

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 0

Stockchase rating for Petroleo Bras Sa Petro is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Petroleo Bras Sa Petro(PBR-N) Frequently Asked Questions

What is Petroleo Bras Sa Petro stock symbol?

Petroleo Bras Sa Petro is a American stock, trading under the symbol PBR-N on the New York Stock Exchange (PBR). It is usually referred to as NYSE:PBR or PBR-N

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Petroleo Bras Sa Petro was recommended as a Top Pick by on . Read the latest stock experts ratings for Petroleo Bras Sa Petro.

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Is Petroleo Bras Sa Petro worth watching?

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What is Petroleo Bras Sa Petro stock price?

On 2024-12-13, Petroleo Bras Sa Petro (PBR-N) stock closed at a price of $13.61.