Interest RatesBrazilApr 19, 2026, 11:07 PM ETPetróleo Brasileiro S.A. - Petrobras (PBR) Stock, PBR.A StockIWA Research2.74K FollowersCommentsSummaryPetrobras is downgraded to Buy after a 62% rally but remains undervalued, with long-term upside from Brazil’s macro and investment cycle tailwinds.PBR’s elevated CAPEX through 2028 will pressure free cash flow and dividends but support asset growth and position the company for post-cycle gains.Political risk and a new 10% dividend withholding tax for nonresident investors temper upside, while state ownership remains a persistent valuation overhang.Intrinsic value exceeds current price even when using conservative assumptions and a very high 15% discount rate reflecting Brazil- and oil-specific risks.mustafaU/iStock via Getty ImagesIntroductionThe last time I covered Petrobras (PBR) (PBR.A), I upgraded them to Strong Buy, backed by their record production, strong free cash flow, and continued expansion despite the fall in oil prices, supporting a solidThis article was written byIWA Research2.74K FollowersI've been researching companies in-depth for over a decade, from commodities like oil, natural gas, gold and copper to tech like Google or Nokia and many emerging market stocks, which I believe could help me provide useful content for readers. After writing my own blog for about 3 years, I decided to switch to a value investing-focused YouTube channel, where I researched hundreds of different companies so far. I would say my favorite type of company to cover are metals and mining stocks, but I am comfortable with several other industries, such as consumer discretionary/staples, REITs and utilities.Analyst’s Disclosure: I/we have a beneficial long position in the shares of PBR.A either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comments