Petrobras upgraded to Buy at Jefferies following underperformance

As previously reported, Jefferies upgraded Petrobras (PBR) to Buy from Hold with an unchanged price target of $15.30. Management’s aim to cut costs to weather lower oil prices and base dividend commitment “positively skews the risk/reward for the stock,” argues the analyst. The ramp up of new platforms should offer some upside to the company’s FY25 output growth target of 5% and with the shares down 28% in the last twelves months, the firm sees scope for shares to re-rate, the analyst tells investors.