For Brazilian oil and natural gas giant Petrobras , Jefferies says to "let the assets do the talking." It believes its pre-salt oil portfolio offshore Brazil gives it one of the strongest asset bases among global energy names — but shares are currently trading at a 30% discount to its peers. The market underappreciates PBR's high margin pre-salt assets & cash returns ability in an US$80/bbl oil world," analyst Alejandro Anibal Demichelis wrote in a Thursday note. Jefferies' set a $21.20 price target on shares, which implies nearly 38% upside potential from Wednesday's close. In comparison, other international oil companies have an average of 11% shareholder distribution yields and 5% dividend yields, according to Demichelis.

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Persons: Jefferies, Alejandro Anibal Demichelis, Demichelis, — CNBC's Michael Bloom Organizations: Petrobras, bbl, PBR's CF, PBR, West Texas Locations: Brazil