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On Thursday, Morgan Stanley (NYSE:MS) analyst Bruno Montanari revised the price target for Petrobras shares, traded on the New York Stock Exchange under the ticker (NYSE:PBR), to $19.00, down from the previous $19.50. Despite this adjustment, the firm sustains an Overweight rating on the stock. According to InvestingPro data, Petrobras maintains a "GREAT" financial health score of 3.18, with analyst targets ranging from $15.00 to $19.50.
Montanari’s report maintained the 12-month target for Petrobras at $76, which is calculated at 14 times the firm’s projected 2025 earnings per share (EPS) of $5.44. This figure remains unchanged, and the 2026 EPS has been initiated at $5.85. The target is slightly above the 13 times long-term mean for the company. With a current P/E ratio of 5.67 and an impressive dividend yield of 18.66%, InvestingPro analysis suggests the stock is trading below its Fair Value.
The analyst highlighted Petrobras’ fourth-quarter EPS of $1.25, which represents a 16% increase year-over-year and surpassed estimates by $0.05. However, the revenue of $2,579 million, a 1% increase from the previous year, fell marginally short of the consensus by $3 million. The company’s robust performance is reflected in its substantial market capitalization of $88.53 billion and trailing twelve-month revenue of $92.5 billion. Discover more comprehensive financial insights with InvestingPro, which offers 8 additional ProTips and detailed valuation metrics for Petrobras.
The shortfall in revenue was attributed to a lower take rate of 13.3% compared to 13.8% a year earlier. This was largely due to the elimination of C2C seller fees in the United Kingdom (TADAWUL:4280) in October. Montanari anticipates an improvement in the take rate by 2025, following the introduction of buyer protection fees in the U.K. and the expansion of managed shipping services.
The first-quarter guidance provided by Petrobras was slightly below the consensus, reflecting a softer economic backdrop in the U.K. and Germany. Additionally, potential risks such as tariffs and changes to the de minimis rule could impact performance. Despite these factors, Morgan Stanley maintains a Buy rating, noting the company’s strong momentum in key categories like parts/accessories, collectibles, and luxury fashion.
Montanari also pointed out that the gross merchandise value (GMV) might benefit from new eBay (NASDAQ:EBAY) listings on Facebook (NASDAQ:META) Marketplace and the recent acquisition of Caramel, which specializes in online vehicle transactions.
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