On Wednesday, Jefferies resumed its coverage on HRT PETROLEO ON (BVMF:PRIO3) stock, issuing a Buy rating and setting a new price target of BRL60.00. The adjustment reflects a notable increase from the previous BRL54.00 target.
The firm's decision comes after HRT Petroleo acquired a stake in the Peregrino field in Brazil, which is anticipated to significantly impact the company's production capabilities and financial performance.
According to the investment firm, the newly acquired Peregrino barrels, along with the forthcoming Wahoo field startup expected in the first half of 2025 and the enhanced performance of the Albacora Leste field, are predicted to enable HRT Petroleo to double its output by the end of 2025.
The analysts believe that the market has not fully recognized the cash flow benefits that the Peregrino field will contribute to the company, citing lower operational expenses and tax credits as key factors.
In light of these developments, Jefferies has raised its 2025-26 EBITDA estimates for HRT Petroleo by 6%. The firm's analysis suggests that the strategic moves by the oil company will bolster its financial strength and position it for a period of significant growth in the coming years.
The upgrade in the price target and the optimistic outlook for HRT Petroleo's future performance reflect Jefferies' confidence in the company's strategy and the potential for increased shareholder value. The market's reaction to this new coverage and price target will be observed as investors and other stakeholders consider Jefferies' analysis of HRT Petroleo's prospects.
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