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Petrobras three-month rally has run its course, Barclays says
May 16 2016, 18:56 ET | About: Petrobras - Petroleo Brasil... (PBR) | By: Carl Surran, SA News Editor
Petrobras (NYSE:PBR) shares have roughly doubled in the past three months, but Barclays analyst Paul Cheng expects the stock to cool, foreseeing little in the way of news or data that would push it higher.
Cheng also says PBR's asset sale program, designed to improve its problematic debt profile, is moving at a pace unlikely to allow the company to meet its $14B 2016 target.
Cheng views PBR as an interesting long-term idea, but says shares could trend lower in the near term due to its persistent debt problems and exposure to headline risk; he says that between the two classes of shares, Barclays believes the preferred (NYSE:PBR.A) to offer more potential upside and better value.
May 16 2016, 18:56 ET | About: Petrobras - Petroleo Brasil... (PBR) | By: Carl Surran, SA News Editor
Petrobras (NYSE:PBR) shares have roughly doubled in the past three months, but Barclays analyst Paul Cheng expects the stock to cool, foreseeing little in the way of news or data that would push it higher.
Cheng also says PBR's asset sale program, designed to improve its problematic debt profile, is moving at a pace unlikely to allow the company to meet its $14B 2016 target.
Cheng views PBR as an interesting long-term idea, but says shares could trend lower in the near term due to its persistent debt problems and exposure to headline risk; he says that between the two classes of shares, Barclays believes the preferred (NYSE:PBR.A) to offer more potential upside and better value.