CFRA Raises Petrobras (PBR) Price Target as it Shows Strong Operational Performance

Core Insights - Petrobras (NYSE:PBR) is recognized as one of the top energy stocks with significant upside potential, with CFRA maintaining a Hold rating while increasing the price target from $13 to $14.50 [1] - The company reported a mixed performance in Q3, with adjusted recurring EBITDA of $11.9 billion, exceeding consensus by approximately 5%, and a quarterly dividend of $2.24 billion, which was 7% higher than expected [2] - Concerns have been raised regarding political interference in the company's operations, particularly under President Lula's administration, which may prioritize job creation over shareholder returns [3] Financial Performance - Petrobras achieved a 17% year-over-year increase in upstream production, despite a 24% rise in capital expenditure to $5.5 billion [2] - Earnings per share projections have been raised to BRL9.33 for FY 2025 and BRL9.03 for FY 2026 [1] Political and Management Concerns - CFRA highlighted potential risks related to political meddling at the board and management levels, suggesting a shift in focus towards job creation rather than maximizing shareholder dividends [3]