Wednesday, October 6, 2010

Petrobras (NYSE:PBR) Downgraded by Itau Unibanco to "Market Perform"

In light of the recent $70 billion sale of shares by Brazil's Petrobras (NYSE:PBR), Itau Unibanco downgraded the company from "Outperform" to "Market Perform."

Itau Unibanco analysts said, "We believe that the last two years have undermined Petrobras’ goodwill with the market and consequently investors’ appetite to pay material premiums, at least for now."

In other words the stock is considered expensive at this time.

Petrobras closed in New York at $36.71 Tuesday, gaining $0.12, or, 0.33 percent. Volume was almost exactly double the 3-month daily average.

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