As previously reported, BofA analyst Caio Ribeiro downgraded Petrobras (PBR) to Neutral from Buy with a price target of R$34, down from R$42, to reflect a more challenging macro outlook and rising regulatory risks. Despite the prevailing low-price environment, OPEC+ appears committed to regaining lost market share by persistently increasing oil production, while macro uncertainties are expected to continue weighing on global economic growth, putting downward pressure on oil prices, the analyst tells investors. In addition, the Brazilian government is contemplating an “oil package” initiative in order to boost public coffers and Petrobras could be negatively impacted if such measures are implemented, the analyst added.
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