Saturday, June 25, 2022

Investor Confidence is Falling for Petroleo Brasileiro S.A. – Petrobras (NYSE:PBR)

The Petroleo Brasileiro S.A. – Petrobras (PBR) shares are trading at lower $8.09 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $13.67.

To add more color to this target, the company’s high over the last year is $16.74 and the low is $4.01. Over the last 52 weeks, PBR is down -51.66% while the S&P 500 is down -5.76%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, PBR reported a profit of $7.26 billion. Petroleo Brasileiro S.A. – Petrobras also saw revenues increase to $17.14 billion. In addition, PBR has free cash flow of $5.91 billion as of 03-2020 The company’s EBITDA came in at -$4.88 billion which compares well with its peers.

PBR booked profit margins of -4.00%, its Return on Equity (ROE) is -4.40%, and its Return on Assets is -1.30%. All told, it is clear that, PBR needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. PBR has a short ratio of 1.34 and outstanding shares of 6.52B.

Company Outlook

PBR has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 33.98 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.66. Petroleo Brasileiro S.A. – Petrobras PBR also noted assets of $186.9 billion at the end of the last quarter. Investors should also keep an eye on sector updates as PBR has historically followed its peers on positive news.

All told, Petroleo Brasileiro S.A. – Petrobras PBR has strung together solid data and demonstrated underlying fundamentals. At its current valuation, PBR represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Petroleo Brasileiro S.A. – Petrobras PBR is now commanding a market cap of 48.48B and a float of 4.19B. PBR is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of PBR stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in PBR, either long or short, and we have not been compensated for this article.

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