Wall Street’s most bullish Petroleo Brasileiro S.A. – Petrobras (NYSE:PBR) analysts are predicting the share price to blow past $20.2 per share during the next 12 months. The current median share price forecast by them is $16.9, suggesting that the stock could increase 10.53% in that time frame. The average price target of $16.82 calls for a nearly 10.01% increase in the stock price.
Petroleo Brasileiro S.A. – Petrobras (PBR) trading activity significantly weakened as the volume at ready counter decreased to 10,190,538 shares versus 19,966,230 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 22,241,725 shares. The share price dropped -1.23% in recent trade and currently has a stock-market value of $95.67B. The shares finished at $15.29, after trading as low as $15.115 earlier in the session. It hit an intraday high Friday at $15.36. The stock is now 70.84% above against its bear-market low of $8.95 on June 19, 2018. It has retreated -12.49% since it’s 52-week high of $17.2 reached in May. Now the market price is up 39.74% on the year and up 17.52% YTD.
PBR’s 50 day simple moving average (SMA 50) price is $14.32 and its 200-day simple moving average (SMA 200) price is $12.89. The company’s stock currently has a total float of 4.11B shares. Its weekly volatility is hovering around 2.97% and felt 3.61% volatility in price over a month. On the upside, the share price will test short term resistance at around $15.39. On a downside, the stock is likely to find some support, which begins at $15.15. The failure to get near-term support could push it to $15.01.
It had seen a positive analyst call from Morgan Stanley, which upgraded the stock from Equal-Weight to Overweight on October 23. Analysts at Barclays, shed their negative views on July 11 by lifting it fromUnderweight to Overweight. The stock lost favor of UBS analysts who expressed their lack of confidence in it using a downgrade from Buy to Neutral on June 08.
When looking at valuations, Petroleo Brasileiro S.A. – Petrobras (PBR) has a pricey P/E of 20.33x as compared to industry average of 8.21x. Moreover, it trades for 10.66 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.27x price/book and 1.06x price/sales. Compared to others, Petroleo Brasileiro S.A. – Petrobras is in a different league with regards to profitability, having net margins of 5.5%. To put some perspective around this, the industry’s average net margin is 11.4%. PBR’s ROE is 6.6%, which is also considerably worse than the industry’s ROE of 13.05%. It’s also very liquid in the near term, with a current ratio of 1.6. The stock has a debt/capital of 1.22.
Shares of Petroleo Brasileiro S.A. – Petrobras (PBR) have dropped -6.9% since the company’s Mar-19 earnings report. Over the past 12 fiscal quarters, Petroleo Brasileiro S.A. – Petrobras (NYSE:PBR) has topped consensus earnings estimates in 7 quarters (58%), missed earnings in 5 quarters (41%), whereas at 0 occasion EPS met analyst expectations. PBR last reported earnings on November 06, 2018 when it released Sep-18 results that receded expectations. The company raked in $0.26 per share, -99.24% change on the same period last year. That was worse than consensus for $0.4. Revenue for the recent quarter stood at $24.87 billion, up 10% on last year and above the $24.57 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $20.58 billion to $27.68 billion, which should be compared with $21.08 billion generated last year. EPS is seen in a range of $0.46 to $0.58, against the $0.4 reported a year ago.