Only six brokerages cover the stock, and four have a Buy or Strong Buy rating, while the others rate it at Hold. At a recent price of around $17.00 a share, the upside potential based on a median price target of $25.00 is about 326%. At the high target of $29.00, the upside potential is 70.6%.
Fiscal third-quarter revenue is forecast at $2.38 billion, which would be down 5.7% sequentially and 4.4% lower year over year. Adjusted EPS are forecast at $0.04, down 71.4% sequentially and by 75.0% year over year. For the 2023 fiscal year ending in June, analysts anticipate EPS of $0.43, down 64.9%, on sales of $9.96 billion, down 4.1%.
The stock trades at 39.2 times expected 2023 earnings, 22.4 times estimated 2024 earnings of $0.76 per share and 18.3 times estimated 2025 earnings of $0.93 per share. Its 52-week trading range is $14.87 to $21.69. The company pays an annual dividend of $0.20 (yield of 1.17%). Total shareholder return for the past year was negative 2.08%.
Petrobras
Petróleo Brasileiro S.A. (NYSE: PBR), or Petrobras, is Brazil’s government-controlled oil and gas supermajor. Surprisingly, perhaps, the company’s returns to shareholders so far in 2023 approaches 15%, more than Exxon Mobil’s year-to-date loss of 0.7%, Chevron’s loss of 10.9% and Norway’s state-controlled giant Equinor’s loss of 15.6%. That is entirely due to Petrobras’s massive payout ratio of 103% and a dividend yield of more than 58%.
The company’s share price is down nearly 17% over the past 12 months, worse than Equinor’s dip of 9%, Chevron’s slip of less than 1% and far below Exxon Mobil’s addition of 28% to its stock price.
Of 13 analysts covering the company, two have a Buy or Strong Buy rating on the American depositary receipts, and 11 have Hold ratings. At a price of around $11.00 per ADR (which is equal to two ordinary shares), the stock’s upside potential based on a median price target of $11.50 is 4.5%. At a high price target of $16.00, the upside potential is 45.5%.
For the third quarter, revenue is forecast at $26.37 billion, down 2.8% year over year. Adjusted EPS are forecast at $0.88, down 30.7% year over year. For the full year, analysts expect EPS of $3.39, down 35.9% year over year, on sales of $103.81 billion, down 16.4%.
The stock’s 52-week range is $8.88 to $16.32. Petrobras pays an annual dividend of $6.44 (yield of 58.47%). Total shareholder return for the past 12 months has been 23.02%.
Originally published at 24/7 Wall St.
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