BTG Sees Combination of Value, Growth and Dividends for Petrobras (PETR4)

BTG Pactual has released its new dividend-focused recommended portfolio for the month of September and has maintained shares of BTG Pactual Petrobras (PETR4) in the portfolio, with a weight of 10%.

In a report, the company says it maintains a constructive outlook on the company. According to analysts, although political developments and new mergers and acquisitions may occasionally impact performance Petrobras sharesthe company still offers an attractive combination of value and growth.

“We expect that increased production in pre-salt fields over the next few years will continue to boost ROIC levels and lead to positive revisions in cash flow estimates from the market,” BTG says.

Analysts maintain a buy recommendation for Petrobras Documents (PETR4), as they understand that there is a risk of an upside surprise to the 15% dividend yield estimate for the next 12 months, “following recent signals from the management team that the company will seek an ideal capital structure and that some adjustments to the investment projections are still feasible.”

Furthermore, according to BTG Pactual, the lack of significant future investments favors the payment of extraordinary dividends from Petrobras before the end of the year.

Check out BTG Pactual’s full recommended dividend portfolio for September:

BTG’s dividend portfolio aims to “find the best companies in terms of generating total shareholder value with a focus on earnings distribution.”

Highlights of the new portfolio include the withdrawals of Vibra (VBBR3), Bradesco (BBDC4) and Tim (TIMS3) and the additions of Allos (ALOS3), Porto Seguro (PSSA3) and PetroReconcavo (RECV3).

In addition, the weight of Itaú (ITUB4), Banco do Brasil (BABS3) and Eletrobras (ELET3) in the portfolio was reduced by 5% each. Petrobrasin turn, has been maintained.

Source: Terra

Rose

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