NEW YORK (TheStreet) -- Shares of Petrobras (PBR) rose to a new 52-week high of $20.87 on Tuesday after Brazilian presidential candidate Marina Silva released her platform, which could aid the state-owned energy company.
Citigroup (C) analyst Pedro Medeiros selected three points from the platform that could help Petrobras, including "the immediate correction to prices that had been restricted and the creation of mechanisms that allow visible adherence to market prices. PBR could increase its EBITDA by R$13 billion if gasoline and diesel prices are adjusted back to parity."
Silva earned the Brazilian Socialist Party nomination after Eduardo Campos died in a plane crash. She has become a viable candidate to unseat incumbent president Dilma Rousseff, as both had 34% of the votes in the latest poll on Aug. 29.
Separately, TheStreet Ratings team rates PETROBRAS-PETROLEO BRASILIER as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate PETROBRAS-PETROLEO BRASILIER (PBR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."