Morgan Stanley Raises PT on Petrobras to $50 (PBR)

Morgan Stanley is out with its report today on Petrobras PBR, raising its PT from $45 to $50.

In a note to clients, Morgan Stanley writes, "We raise our EPS estimates on an expected increase in retail prices in 2H11; and up our price target to $50 from $45. Our estimates rise by 10% for 2011 and 14% for 2012. We are 7% above consensus as we expect oil prices to remain elevated (above $95/bbl over the next six months) and view an increase in retail price as very likely as refining margins would be unsustainably low without it."

Morgan Stanley maintains Overweight on PBR.

At the time of posting, shares of PBR were trading pre-market at $40, down 1.06% from Wednesday's close.