Petrobras downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded Petrobras to Equal Weight from Overweight with a price target of $18, down from $20. The firm said that a split decision about extraordinary dividends has prompted it to move to the sidelines on Petrobras, even if the firm still sees upside and a base dividend of about 12% remains healthy. Morgan Stanley believes investors are unlikely to add to positions until payments from the remuneration account start to come, or if the base yield goes over 15%.