Mensajepor manzana » Mié May 20, 2015 1:35 pm
Barclays sees long-term potential for more than 50% upside to $14 in Petrobras (NYSE:PBR), rating the shares at Outperform, but the firm likes the company's preferred shares (NYSE:PBR.A) even more.PBR definitely is not for the short-term investor, the firm says, as it expects balance sheet concerns and headlines from the continuing investigation will remain a normal part of life for at least 2-3 years, with the shares volatile and heavily subject to headline risks; however, Barclays believes last month’s announcement of Q4 audited results and the corresponding corruption related writedown are the important first steps of an expected long recovery road which eliminates the near-term risk of triggering any technical default.Barclays says the preferred shares offer much better value; while the company will not pay any dividend due to the writedown, the firm expects the payout will be reinstated in 2016, and for the preferred shares to continue to receive a much higher payout than the common stock at least through 2017-18.