BB Investimentos adjusts target price upwards By Investing.com

Investing.com – BB Investimentos decided to revise upwards the estimated target price for Petrobras (BVMF:) preferred shares, reinforcing the positive view and purchase recommendation for the stock. Thus, the target price went from R$42 to R$47 at the end of 2024.

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Analyst Daniel Cobucci recalls that last week’s meeting approved the distribution of extraordinary dividends to shareholders of the state-owned company. Thus, total shareholder remuneration was R$94.4 billion in 2023, a payout of 75.4%, according to the analyst. “In the year, Petrobras delivered a dividend return of 23.4%, considering the average price of both shares in 2023, representing the second highest amount paid among the six largest global oil companies, behind only Petrobras. Saudi Aramco (TADAWUL:)”, he highlights.

Cobucci also recalls that, in recent years, the start of operations of several new platforms, with a decrease in extraction costs, led to a strong generation of operating cash, which is seen favorably, despite the drop in profit last year , facing a difficult comparative basis after a strong oil boost in the previous period.

“Petrobras is a complex company, often in the spotlight, whether due to the impact of its policies on the country, but especially due to the high return potential perceived by investors, despite the multiplicity of perspectives on reconciling its role as a state-owned company and company listed on the stock exchange”, he concludes.

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At 1:18 pm (Brasília time), Petrobras shares rose 0.70%, to R$41.69.

What InvestingPro says about Petrobras

Petrobras is traded at a multiple considered low and pays good dividends to shareholders, according to Protips of the InvestingPro, Investing.com’s premium platform. Protips are artificial intelligence (AI) insights based on fundamental indicators.

Petrobras’ financial health is assessed as excellent performance, with a score of four, on a metric that ranges from one to five.

The fair price of Petrobras’ preferred shares is estimated at R$60.22 by InvestingPro, according to 14 investment models. The target of ten analysts is more pessimistic, at R$42.13.

Do you want to invest in companies in the oil sector, but are looking for more data about them? To have access to the financial models referring to the fair price indicated in the InvestingProhistorical financial statements, dividend return, price-to-earnings ratio and comparison with peers of all Brazilian companies, in addition to more than 135,000 shares from around the world, access the platform!

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