BB Investimentos has upgraded Petrobras (PETR4) from neutral to buy, citing the persistence of geopolitical risk and the establishment of a higher price floor for crude oil.
The recommendation change, led by analyst Daniel Cobucci, reflects a growing consensus that Middle East instability is providing structural support to energy prices, benefiting integrated majors with significant upstream exposure.
This shift in analyst sentiment aligns with recent market dynamics where Brent crude has stabilized near $72, supported by geopolitical uncertainty that caps downside risk.
The upgrade comes as Petrobras shares have already rallied more than 2% in recent trading, tracking a broader surge in global energy markets.
Investors are increasingly pricing in the risk of supply disruptions, particularly around the Strait of Hormuz, which remains a critical chokepoint for global oil flows.
The Brazilian state oil company’s valuation is being reassessed in light of these elevated benchmark prices, which improve the margin outlook for its production operations.
This shift in analyst sentiment aligns with recent market dynamics where Brent crude has stabilized near $72, supported by geopolitical uncertainty that caps downside risk.