In the tumultuous world of finance, Petrobras (NYSE:PBR) managed to secure a modest gain of +0.4% during Monday’s trading session. This meager rebound followed a substantial 12.4% dip on Friday, an event that left investors reeling. The company’s failure to distribute extraordinary dividends as anticipated came as a crushing blow to many who were eyeing a windfall ranging from $3 billion to $4 billion, in addition to the regular year-end payouts.

Defying the prevailing air of disappointment, Petrobras (PBR) CEO Jean Paul Prates delivered a ray of hope on Monday. He hinted at the lingering possibility of an extraordinary dividend, emphasizing that the matter might be subjected to a crucial vote at the shareholders’ assembly scheduled for April.

Amidst swirling speculations, Prates emphatically refuted claims that Brazilian President Luiz Inacio Lula da Silva had wielded influence over government-appointed board members to veto the dividend proposal. Such rumors, albeit baseless, had inadvertently fueled the nosedive in the company’s stock price on Friday.

Reports indicate that an imminent meeting between Prates and Lula is on the horizon, though, interestingly, the encounter was arranged prior to the recent dividend debacle. Despite these pressing matters, the indomitable spirit of uncertainty continues to loom large over Petrobras.

In the aftermath of Friday’s market turbulence, financial behemoth Morgan Stanley chose to recalibrate its stance on Petrobras (PBR). The downgrade from an Overweight rating to Equal Weight was met with a revised price target of $18, shaved down from the initial $20. Evidently skeptical of a quick market recovery, the analysts opined that investor interest might remain stagnant until funds start to trickle in from the remuneration account or if the baseline dividend yield surpasses 15%, in contrast to the current “healthy” level of approximately 12%.

The once robust positioning of Petrobras (PBR) in the industry was predominantly underpinned by its compelling valuation when juxtaposed with other oil majors. However, this narrative is now in a state of flux, opined Morgan Stanley analyst Bruno Montanari in a rather matter-of-fact tone.

Reflecting on the company’s buoyant performance, Montanari articulated a cautious stance, suggesting, “Given the remarkable stock trajectory and an impressive total return of 72% over the past year, it might be prudent to hold off until further clarity emerges regarding the utilization of the capital remuneration account for potential dividends in the upcoming quarters.”