HSBC upgrades Petrobras to Buy with bad news priced in

HSBC upgraded Petrobras to Buy from Hold with an unchanged price target of $18. The analyst thinks the bad news is already priced into the shares. Petrobras’ “future has not changed much,” the analyst tells investors in a research note. The firm says a “more balanced” board of directors should continue to prevent bold subsidies to consumers and “value-destructive investments that in the past led to subpar profitability and zero distributions.” HSBC sees the recent stock price decline as a further opportunity to add Petrobras.