Petrobras (PBR, quote) stock on the move after earnings slump on higher import fuel costs. The stock has rocketed through the 200 day moving average this morning and hasn’t seen this type of strength through that average since January of 2012.
The stock currently sits 7% above the 200 day moving average this morning on strong volume. Expectations are growing that the government will have to again raise domestic gas prices closer to international parity as Petrobras earnings slump.
There have been four price raises since 2012 but domestic subsidies still have local gas prices -20% to international levels. Despite Friday’s earnings results that missed the street estimates by 41% Petrobras is still listed with an average target price of $21 per-share this morning on new price updates from DB, Credit Suisse, and JPM.
