(Public) Petrobras Primer

PBR is Brazil's national oil company, currently trading at ~$15 but valued at $20-25. It accounts for 88% of Brazil's oil and gas production. While there is political risk, it is overstated. The company has the capacity for a $2.67/share dividend at $80 Brent, which represents a 17.6% yield. The company has 11.5 years of reserves and $43.6B in net debt versus $40B in cash flow. The target price is $30.13 at $100 oil, representing 100% upside. It is preferable to buy at $12-13 on fear.