UPDATE: Bank of America Downgrades Petrobras to Neutral, Lowers PT

In a report published Monday, Bank of America Downgraded Petroleo Brasileiro S.A. (Petr) (NYSE: PBR-A) from Buy to Neutral, and lowered price objective from $30 to $23. Bank of America noted, "We are downgrading Petrobras to Neutral and reducing our PO from US$30/ADR (R$29/sh) to US$23/ADR (R$22.50/sh), given increasing concerns that the lack of price adjustments for refined products is likely to limit earnings/ cash-flow and reduce operational and financial flexibility over the next twelve months. As a result, we think a more cautious view is appropriate. Although we see limited downside risk, we think the upside is also limited until these issues are resolved." Petrobras closed at $20.22 on Friday.