BofA Securities Downgrades Petrobras (PBR) to Neutral

BofA Securities analyst Frank McGann downgraded Petrobras (NYSE: PBR) from Buy to Neutral with a price target of $16.50.

The analyst stated "We move our rating on Petrobras to Neutral from Buy to reflect increased uncertainty that the company will be able to benefit fully from the rise in prices, given increased political pressure to limit domestic prices in Brazil. Almost daily commentary from leading candidates for the upcoming presidential election related to Petrobras´s prices is likely to continue through the Oct-22 election. And, there are risks that the next government could change Petrobras´s currently focused capital allocation. We expect this will likely limit potential upside for the shares, despite still attractive FCF and dividend yields."

For an analyst ratings summary and ratings history on Petrobras click here. For more ratings news on Petrobras click here.

Shares of Petrobras closed at $13.36 yesterday.

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