CFRA Raises Petrobras (PBR) Price Target as it Shows Strong Operational Performance

Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) ranks among the best energy stocks with huge upside potential.  On November 10, CFRA reaffirmed its Hold rating on Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) but increased its price target from $13 to $14.50. The firm raised Petrobras’ earnings per share projections to BRL9.33 for the fiscal year 2025 and BRL9.03 for the fiscal year 2026.

Petrobras’s third-quarter performance, according to the firm, was “somewhat mixed,” with more capital expenditure leading to worse cash flows despite improved production. Petrobras (NYSE:PBR) reported adjusted recurring EBITDA of $11.9 billion, which was roughly 5% higher than the company-collated consensus. Additionally, the Brazilian oil giant revealed a $2.24 billion quarterly dividend, which was 7% higher than anticipated. The company’s performance was boosted by a 17% year-over-year improvement in upstream production, despite a 24% increase in capital expenditure to $5.5 billion over the same time period.

Additionally, CFRA voiced concerns about political meddling at the board and management levels, pointing to the possibility that President Lula would promote a focus on creating jobs rather than shareholder dividends, possibly pursuing projects outside the company’s area of interest or with fewer returns.

Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is involved in exploration, production, and distribution activities involving oil and gas.

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Disclosure: None. This article is originally published at Insider Monkey.