Petrobras Analysts See Key Risk Erased After $9 Billion Deal

An agreement between Brazil’s oil giant Petroleo Brasileiro SA and the government has ended a five-year dispute and eliminated one of the main uncertainties surrounding its investment case, analysts said.

JPMorgan increased its price target for the company’s American depositary receipts to $21.50 from $20, and the bank expects Petrobras to use “a good portion” of the $9.06 billion settlement to fund its own participation in a deep-water oil auction set for Oct. 28.

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