By Nick Chiu
Petroleo Brasileiro Petrobras SA (PBR) and Total SA (TOT) are two large cap, oil and gas integrated companies offering steady income and currently trading at low Forward P/E. Both stocks had received positive upgrades from analysts recently and will be analyzed fundamentally and technically in this article. Investing strategies will also be presented.
Petroleo Brasileiro Petrobras SA
PBR is a Brazil-based integrated oil and gas company, controlled by the Brazilian government. PBR was up 2.36% and closed at $17.81 on March 15, 2013. PBR had been trading in the range of $14.40-$28.70 in the past 52 weeks. PBR has a market cap of $116.16B with a beta of 1.48.
On March 7, 2013, Credit Suisse upgraded PBR from neutral to outperform with a price target of $25.00. Analysts stressed they have been cautious for years but added that the recent move to raise diesel prices may be the beginning of a change in attitude, and the company might be at a “inflection point”. PBR had gained 22.91% since the closing of March 5, 2013.
Analysts currently have a mean target price of $25.71 and a median target price of $24.10 for PBR. Analysts are estimating an EPS of $0.63 with revenue of $36.11B for the current quarter ending in March 13, 2013. For 2013, analysts are projecting an EPS of $2.22 with revenue of $154.28B, which is 7.10% higher than 2012.
On March 15, 2013, PBR stated it will keep its 5 year capital spending plan at $236.7B according to the original plan.
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