Petroleo Brasileiro SA (NYSE:PBR) is one of the 10 Stocks to Watch Right Now.
Petroleo Brasileiro soared to a new two-year high on Friday after three straight days of decline, as investor sentiment was buoyed by its return to profitability and the distribution of $1.5 billion in dividends.
At intra-day trading, Petroleo Brasileiro SA climbed to its highest price of $17.83 before paring gains to finish the session just up by 5.29 percent at $17.62 apiece.
An oil drilling platform. Photo by Jan-Rune Smenes Reite on Pexels.
In the fourth quarter last year, Petroleo Brasileiro SA swung to a net income attributable to shareholders of $2.889 billion from a $2.78 billion net loss in the same period a year earlier. Sales revenues jumped by 13 percent to $23.6 billion from $20.8 billion year-on-year.
Petroleo Brasileiro SA attributed the increase to its excellent operational results, backed by an 11 percent jump in total oil and gas production, which offset a 14 percent decline in Brent crude prices.
Following the results, investment firm Morgan Stanley raised its price target to $20 from $17.50 previously and maintained an “overweight” rating for the stock, amid management signals that it would readjust prices regardless of international benchmarks while avoiding immediate volatility pass-through to domestic prices.
“We expect upward earnings revisions and remain OW (overweight),” it said.
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