Petrobras (NYSE: PBR) is having an incredibly strong start to the trading session this morning, and for good reason. While the company hasn’t released any news of its own, it is the center of a key analyst upgrand and political pressures are decreasing. With this news in mind, investors are excitedly sending the stock on a run for the top. Today, we’ll talk about:
- The news;
- what we’re seeing from PBR stock as a result; and
- what we’ll be watching for ahead.
Here’s What’s Happening With PBR
As mentioned above, Petrobras is having an incredibly strong start to the trading session this moring for multiple reasons. First and foremost J.P. Morgan increased its rating on the stock from neutral to overweight. The better opinion among the analyst had to do with volume growth and reduced political risk. J.P. Morgan set the price target on PBR to $17.
Another major factor in the gains that we’re seeing from PBR today has to do with politics. Recently, Jair Bolsonaro was elected as the president of Brazil. The new president takes a completely different approach to politics than the previous leader of the country. Many believe that due to his widely republican views, Bolsonaro will lead to economic improvements in the country, setting the stage for PBR and others to benefit from the changing economic tides.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Petrobras, the news that was released today proved to be positive. Not only was the company the center of an analyst upgrade, it is operating in a region where many expect to see economic improvements. So, it comes as no surprise that excited invesotrs are sending the stock on a run for the top this morning. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:10), PBR is trading at $15.37 per share after a gain of $1.47 per share or 10.62% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on PBR. In particular, we’re interested in following the story surrounding the economic and political environment in Brazil that could lead to opportunity for the company ahead. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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