Company Update: Petroleo Brasileiro Petrobras SA (ADR)(NYSE:PBR)

[Zacks] Petroleo Brasileiro Petrobras SA (ADR)(NYSE:PBR) (TREND ANALYSIS), Brazilian state-run energy giant has postponed its third-quarter 2014 earnings for a month amid escalating tensions owing to a multibillion-dollar money laundering and bribery case embroiling it. Petrobras was slated to release its third-quarter earnings last Friday but is now expected to provide the unaudited report on Dec 12.

Following the announcement, Petrobras ADR dipped more than 6% during intraday trading on the NYSE on Friday to touch a 52-week low of $9.51 per ADR.

Renato Duque − former director of engineering and services at the company – was arrested last Friday while 30 police teams was conducting a corruption investigation across Brazil. The detention of Duque was the second arrest of a former top Petrobras executive in 2014.

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Taking a look at the company’s recent performance, Petroleo Brasileiro Petrobras SA (ADR)(PBR) reported on August 12th. The company reported actual earnings per share of $0.36 against the consensus Street estimate of $0.48.

Petroleo Brasileiro Petrobras SA (ADR)(NYSE:PBR) is currently valued at $58.99 billion and closed the last trading session at $9.33. The stock has a 50-day moving average of $13.02 and a 200-day moving average of $15.30.

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There are currently nine analysts that we track that cover the stock. Of those nine, one has a Buy rating and eight have a Hold rating. On a consensus basis this yields a score of 2.11 and a Hold. The combined price objective of these covering analysts is $17.67, which represents a 89.35% upside difference to the last closing price.

The most recent analyst activity consisted of Cowen and Company Downgrading their market perform stance on the company. Cowen and Company has a price target from $22.00 to $18.00 which represents an upside of 92.93% from the last closing price. On the date of the report, the stock closed at $10.62.

Another research firm weighing in recently was Goldman Sachs who also downgraded their rating on the stock. On the day of the report, PBR shares closed at $11.21.

Company Profile

Petroleo Brasileiro Petrobras SA (ADR)(NYSE:PBR) operates as an integrated oil and gas company in Brazil and internationally. It’s Exploration and Production segment is engaged in the exploration, development, and production of crude oil, natural gas liquids, and natural gas; sale and transfer of crude oil in domestic and foreign markets; and sale of oil products produced at natural gas processing plants. The company’s Refining, Transportation, and Marketing segment is involved in the refining, logistics, transport, and trading of crude oil and oil products, as well as exports ethanol and invests in petrochemical companies. This segment is also engaged in the extraction and processing of shale. These segments products include gasoline, diesel, and residential liquefied petroleum gas.

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