BTG Pactual investment bank cut their recommendation for
Petrobras stock to neutral due to the limited impact
of the recent increase in Brazilian fuel prices.
Petrobras last month raised gasoline prices at its
refineries by 6.6 percent and diesel by 5.4 percent.
BTG Pactual analyst Gustavo Gattass said in a note to
clients that the increases were not enough to cover the
state-led oil giant's losses from selling subsidized fuel.
"While it was good to see some action on the fuel price
front, we fear the small magnitude of the increase is a signal
that Petrobras' board does not share our sense of urgency with
regards to the deterioration of the company's balance sheet."
"We are not downgrading Petrobras to Sell on the hope that
more small increases could come in coming months. Our target is
cut to $20/ADR," Gattass said.