Petrobras (PBR -1%) shares continue to slump after yesterday's earnings-induced rout, but...

|About: Petrobras - Petroleo Brasil... (PBR)|By:, SA News Editor

Petrobras (PBR -1%) shares continue to slump after yesterday's earnings-induced rout, but Raymond James says the downdraft isn't over. PBR trades at a mere 8.1x 2014 earnings, but the firm warns not to be seduced by the apparent bargain price, citing slim visibility on a domestic production rebound, the highest financial leverage among peers, and another year of dramatically negative free cash flow.