Petrobras Post Reveal: Cowen Is Resetting Expectations

In a report published Friday, Cowen & Co analysts maintained a Market Perform rating on

, while raising the price target from $9 to $11.50. The analysts said they liked the "changing emphasis" by the new management. The company's share price has skyrocketed more than 50 percent so far this month, boosted by anticipation of the release of audited financial results. "We applaud the new management team for delivering audited results under fairly challenging circumstances, while articulating a more shareholder friendly strategy," the analysts said. Although investors are still largely skeptical, the analysts "liked the new emphasis" on "de-leveraging" and "capital discipline." The company has projected a more than 30 percent decline in capital spending in 2015/2016. In the report Cowen & Co noted, "While we had highlighted PBR as a prime beneficiary of near-term macro resolution, we have been somewhat surprised by the sharp recent share price move…To reflect recent sharp share price move (albeit from very depressed levels) & de-risking following publication of audited results, we are adjusting our PT to $11.50 (from $9) - while we await more details on the five-year strategic plan." Following the publication of audited results, the PBR story seems to have "finally turned a corner," although there are a number of challenges, including government intervention and corruption scandal related headlines that have historically been hard to handicap.