Brazilian Equities Surge as Commodity Prices Rise
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 27 2026
0mins
Should l Buy PBR?
Source: Benzinga
- Strong Market Performance: The iShares MSCI Brazil ETF (EWZ) has surged approximately 20% in early 2026, significantly outperforming the SPDR S&P 500 ETF (SPY), which gained only 3%, indicating a robust recovery in Brazilian equities and a resurgence of investor confidence.
- Technical Breakout Signal: The EWZ/SPY relative spread has broken above its long-term downtrend, signaling a potential technical breakout that could attract more capital into Brazilian equities, marking an end to decades of underperformance.
- Macro Analysis Support: Otavio Tavi Costa, CEO of Azuria Capital, noted that Brazil's largest energy company, Petroleo Brasileiro SA, is on the verge of a major breakout, indicating that the Brazilian market's rebound is closely tied to a larger shift in global markets, potentially signaling the start of a longer-term structural trend.
- Optimistic Industry Outlook: Analysts at 22V Research are bullish on Brazil's prospects, suggesting that sectors like materials, energy, and banks will benefit from a weaker dollar, driving capital inflows and creating strong market momentum.
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Analyst Views on PBR
Wall Street analysts forecast PBR stock price to fall
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 18.160
Low
13.30
Averages
15.15
High
17.00
Current: 18.160
Low
13.30
Averages
15.15
High
17.00
About PBR
Petroleo Brasileiro SA Petrobras is a Brazil-based company. The Company specializes in the oil, natural gas and energy industry. The Company is engaged in prospecting, drilling, refining, processing, trading and transporting crude oil from producing onshore and offshore oil fields and from shale or other rocks. Its segments include Exploration and Production (exploration, development, and production of crude oil, natural gas liquids, and natural gas); Refining, Transportation, and Marketing (refining, logistics, transport, trading of oil products, ethanol export, shale processing); Gas and Power (transportation and trading of natural and imported gas); Biofuels (production of biodiesel and ethanol); Distribution (fuel distribution); and Corporate (administrative and support functions).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Significant Revenue Growth: The company achieved revenue of $23.61 billion in Q4, a 13.4% year-over-year increase that exceeded market expectations by $790 million, demonstrating strong market performance amid a global energy demand recovery.
- Net Income Performance: Excluding one-off events, Petrobras reported a net income of $4.75 billion for Q4, showcasing the company's efforts to maintain stable profitability despite external market uncertainties.
- Record Oil Exports: Petrobras set a record for oil exports in Q4, driven by increased domestic production, which not only strengthens the company's market position but also potentially supports future shareholder returns.
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- Military Action Outlook: President Trump indicated that the current military operations against Iran could last four to five weeks, intensifying market expectations for future oil price volatility and prompting investors to reassess their energy asset allocations.
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- Future Disclosure: Both Braskem and Petrobras stated that additional material facts will be disclosed once final terms of the potential transaction are notified, which may influence investor expectations regarding the company's future developments, especially amid pre-transaction market volatility.
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