Wait and see on Petrobras, Barclays believes

|By:, SA News Editor

Petrobras (PBR +0.9%) shares look attractive using net asset value analysis, but investors should take a wait-and-see approach since the stock is unlikely to outperform in the next year, Barclays believes.

While management has made solid progress in terms of efficiency, production has not yet begun to show Y/Y improvement; given PBR’s track record of underperforming production guidance, the firm doesn’t think investors will give the shares credit until reported results confirm management’s guidance.

Rather than PBR, Barclays suggests Suncor Energy (SU), ConocoPhilips (COP) and Husky Energy (HUSKF.PK) for better risk/reward potentials. (also)