NEW YORK (TheStreet) -- Shares of Petrobras are down 2.25% to $6.07 Thursday afternoon, as Brent crude future prices trade below $61 a barrel due to the dollar's sharp rise compared to the euro, according to Reuters. Brent crude for April delivery is down 0.31% to $60.33 a barrel as of 1:46 p.m. ET today. Earlier today, European Central Bank President Mario Draghi focused on improved growth prospects as he unveiled some of the details from the more than 1 trillion euro bond buying plan, Reuters added. Also, analysts at Deutsche Bank downgraded the state-owned oil and gas company to "hold" from "buy." The firm also cut its price target to $9.70 from $12.70, citing challenging economic conditions and an emerging political crisis in Brazil. The firm also cited relatively stronger international crude prices, resulting in a faster than expected "convergence of domestic gasoline and diesel prices in Brazil with the import parity." Petrobras is a Brazil-based integrated oil and gas company, operating in seven segments including exploration and production, refining, transportation and marketing, gas and power, biofuel, distribution, and international. Separately, TheStreet Ratings team rates PETROBRAS-PETROLEO BRASILIER as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation: "We rate PETROBRAS-PETROLEO BRASILIER (PBR.A) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and poor profit margins." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth came in higher than the industry average of 18.7%. Since the same quarter one year prior, revenues slightly increased by 3.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. PBR.A's debt-to-equity ratio of 0.84 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.30 is sturdy. Net operating cash flow has decreased to $6,413.00 million or 18.05% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, PETROBRAS-PETROLEO BRASILIER has marginally lower results. The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, PETROBRAS-PETROLEO BRASILIER's return on equity is significantly below that of the industry average and is below that of the S&P 500. You can view the full analysis from the report here: PBR.A Ratings Report
Click to view a price quote on PBR.A. Click to research the Energy industry.
from Latest TSC Headlines http://ift.tt/1BLQepp
No comments:
Post a Comment