Bradesco BBI Upgrades Petrobras to Buy with 2027 Target

AI-summarized · Neutrality-checked

Bradesco BBI upgraded Brazilian state oil firm Petrobras from neutral to buy, maintaining a 2027 price target of R$53 (US$10.26) per share. The upgrade followed a recent decline in share prices caused by falling oil prices, which analysts argued created an asymmetric risk-return profile. The bank projected a 25% total return through 2027, supported by an estimated annual production growth of 10.9% and a 58% valuation discount compared to global oil majors.

Consequences

The company may face downside pressure if global oil prices continue to drop or if the firm pursues a costly rescue of the petrochemical company Braskem. Conversely, if market estimates for oil production climb toward the 2.8 million barrels per day projected for 2027, the stock may see upward price movement.

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