Goldman Sachs Suggests Positioning For Upside in PBR and NIHD

Goldman Sachs is out with a research note this morning, where it suggests that traders buy calls on Petroleo Brasileiro S.A. PBR and NII Holdings, Inc. NIHD. While the GS analysts made the case that as a whole they are worried about the Brazilian Bovespa, they noted that LatAm single stock volatility metrics have recently moved higher, consistent with the pullback in Ibovespa and heightened concerns around the macro landscape. Within this backdrop, the analysts see pockets of opportunity in PBR and NIHD. They suggest buying the July $41.00 call on PBR for 5% of shares, as well as buying the June $41.00 call on NIHD for 7% of shares. Petroleo Brasileiro S.A. is an integrated oil and gas company. The company operates in five segments: exploration and production; refining, transportation and marketing; distribution; gas and power, and international. The exploration and production segment includes oil and gas exploration, development and production in Brazil. NII Holdings, Inc. provide wireless communication services. NII Holdings provides these services under the Nextel brand through operating companies located in selected Latin American markets.