NEW YORK (TheStreet) -- Shares of Petroleo Brasileiro Petrobras (PBR.A) are sinking, down 7.6% to $6.99 in morning trading Monday, after analysts at Credit Suisse lowered their price target to $7.30 from $14 with a "neutral" rating.
Analysts at the firm cited difficulties in valuation, failure to provide unaudited third-quarter results, as well as falling oil prices, for lowering its price target on shares of the Brazilian oil and gas company.
Credit Suisse also noted that the company's "positive free cash flow" and "no need for additional financing" in 2015, were the two most important points from Petrobras' Friday statement.
Last Friday, charges were announced against 36 suspects in Brazil's corruption scandal in which companies allegedly bribed public officials and overcharged the state-run energy company, as Brazil's top prosecutor called for Petrobas' management to step down in light of the recent scandal.
Prosecutor General Rodrigo Janot said Petrobas, Brazil's largest company, must be carefully scrutinized while its operations are made more transparent, Reuters noted.
Former director of Petrobras' refining division, Paulo Roberto Costa, was charged along with 23 executives from major Brazilian construction companies.
Alberto Youssef, who allegedly deals currency on the black market and distributed the bribe payments, was also charged, according to Market Watch.
Also, oil prices fell to a new five-year low this morning, as brent crude for January delivery fell $1.57 to $60.28 a barrel in Asian trade, its lowest price since July 2009. Brent was trading lower by 0.16% to $61.75 as of 10:35 a.m. today.