Is Petroleo Brasileiro (PBR) One of the Must-Buy Non-Tech Stocks to Invest in Now?

Petroleo Brasileiro (NYSE:PBR) is among the must-buy non-tech stocks to invest in now. On March 26, UBS boosted its price target on Petroleo Brasileiro (NYSE:PBR) to $22 from $14.60 while reiterating a Buy rating on the stock.

The equity research firm pointed to the company’s strong cash generation and solid dividend yield as factors for its renewed bullish stance on the stock. It sees the company delivering dividend yields in the range of 11% to 12% for the next two years.

Additionally, UBS cited higher gasoline and diesel prices as positive for the state-run Brazilian oil and gas giant. But even without fuel price increases, the firm projects that Petroleo Brasileiro, which is also called Petrobras, would pay a dividend yield of around 10% in 2026.

On the same day that UBS raised its price target on Petrobras, Reuters reported that the company had made a new discovery of high-quality oil in the ​Campos Basin pre-salt area. The report stated that Petrobras made the discovery at an exploratory well in an area off the coast of Rio de ​Janeiro state.

On March 17, Petrobras disclosed in regulatory filings that it would purchase Petronas’ stake in two offshore fields in Brazil’s ​Campos Basin. This acquisition would give it complete control of these assets, which have a combined output of around 55,000 barrels per day.

Petroleo Brasileiro (NYSE:PBR) is a Brazilian multinational corporation engaged in the petroleum business. The company explores, produces, and sells oil and gas to domestic and international customers. It also operates refineries and offers logistics services. Moreover, the company produces fertilizer. Petroleo Brasileiro is majority state-owned and is headquartered in Rio de Janeiro.

While we acknowledge the risk and potential of PBR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PBR and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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