Petrobras Oil Discoveries Limited by Bradesco's Negative Outlook

Petrobras, a Brazilian oil and gas giant, has recently announced new oil discoveries in the Cretaceo reservoirs of the Espirito Santo Basin and four adjacent blocks in the Gulf of Mexico, in partnership with US ExxonMobil. Despite the positive news, Bradesco's analysts remain cautious, reiterating a "market perform" stance on the company's shares and expecting a limited impact on the stock price. The bank also set price targets for Petrobras' preferred shares and American Depository Receipts (ADRs) on the New York Stock Exchange.

Key Takeaways:

• Petrobras announced the discovery of oil accumulation in the Cretaceo reservoirs of the Espirito Santo Basin.
• The company also declared two other oil finds and a gas deposit discovery in four adjacent blocks in the Gulf of Mexico in partnership with ExxonMobil.
• Bradesco analysts remain cautious, reiterating a "market perform" stance on the company's shares.
• The bank expects the preferred shares (PETR4) to vary 10% up or down in relation to the Ibovespa benchmark index of the Sao Paulo Stock Exchange.
• The price target for PETR4 is BRL 35, while the ADRs (PBR) were assigned a price target of USD 44.70.
• On Friday, PETR4 closed down 0.16% at BRL 23.74 in Sao Paulo, while the PBR lost 0.66% to USD 33.21 on NYSE.

Statistics:

• 10% expected variation of Petrobras preferred shares (PETR4) in relation to the Ibovespa benchmark index.
• BRL 35: price target for PETR4.
• USD 44.70: price target for Petrobras' American Depositary Receipts (PBR).
• 25% stake in Petrobras in three of the four blocks in the Gulf of Mexico.
• 50% stake in Petrobras in the fourth block in the Gulf of Mexico.

Sources:

• ADPnews (2011-06-13)
• Bradesco (no date mentioned in the source)