Petrobras Revised To $21 On Rising Upstream Production, Improving Downstream Margins

Last year, Petrobras' average daily oil production in Brazil was 1,931.4 thousand barrels per day, an estimated 90.9% of Brazil's total oil production. Based on the recent earnings announcement, we have revised our price estimate for Petrobras to $21/share, which values it at 10x our 2014 full-year diluted EPS estimate of $2.1 for the company.