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Is it time for Petrobras to party like 2009? Goldman Sachs says yes (PBR, REPYY, GS, TOT)

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Major oil companies such as Petrobras ( PBR , quote ), Total SA ( TOT , quote ) and Repsol YPF SA ( REPYY , quote ) are slipping toward their price levels from the early 2009 period.

Petrobras (PBR) is down more than 10% for the week, almost 10% for the month, more than 24% for the last six months and over 35% year to date. Over the last month, Repsol YPF SA (REPYY) has fallen more than 10% and year to date, its Argentine affiliate YPF Inc is down almost 30%. Total SA (TOT) is off more than 8% for the week and more than 10% for the last half year.

As a result, PBR, TOT and REPYY all have tremendous upside. Now around $24 a share, Petrobras is close to the $22 range it was trading in during early 2009. It is not expected to stay there as Goldman Sachs ( GS , quote ) just rated Petrobras a buy.

While demand for crude oil is down right now, growth around the world will return, particularly in emerging markets such as China, Brazil and India.

Repsol SA (REPYY), Petrobras (PBR) and Total SA (TOT) are worth the wait as each major oil company has very healthy financials and a robust dividend.

Petrobras pays a dividend of over 5%. Repsol SA also has a dividend of over 5%. Total SA pays a dividend of almost 7%. Remember the average dividend for a stock on the Standard & Poor's 500 Index is under 2%.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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