In a report released today, Liam Burke from B.Riley Financial maintained a Buy rating on Scorpio Tankers (STNG – Research Report), with a price target of $80.00.
Liam Burke has assigned a Buy rating to Scorpio Tankers based on a variety of factors. Firstly, Scorpio has shown strong performance even during seasonally slow quarters, generating strong operating leverage and free cash flow. In spite of a decrease in time charter equivalent (TCE) revenue compared to the previous year, the company has reported better-than-expected adjusted EBITDA, indicating effective management.
Furthermore, Scorpio is well positioned for future success due to a combination of tight global fleet capacity and increasing global demand for refined petroleum products. The company has maintained high fleet utilization, even in the absence of port congestion, and spot rates remain high by historical standards. Additionally, Scorpio has shown active capital allocation, repurchasing shares and reducing financial risk by lowering debt. These factors, combined with expectations of a global recovery in refined crude oil consumption, have led to Burke’s Buy rating.
According to TipRanks, Burke is a 5-star analyst with an average return of 14.9% and a 50.70% success rate. Burke covers the Industrials sector, focusing on stocks such as Genco Shipping, Global Ship Lease, and Scorpio Tankers.
In another report released today, Deutsche Bank also maintained a Buy rating on the stock with a $70.00 price target.
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Scorpio Tankers (STNG) Company Description:
Scorpio Tankers, Inc. engages in the provision of marine transportation of petroleum products. It operates through the following segments: Handymax, MR, LR1/Panamax, and LR2/Aframax. The company was founded by Emanuele A. Lauro on July 1, 2009 and is headquartered in Monaco.
Read More on STNG:
- Scorpio Tankers increases quarterly dividend to 35c per share
- Scorpio Tankers board replenishes $250M securities repurchase program
- Scorpio Tankers reports Q3 adjusted EPS $1.91, consensus $1.52
- Scorpio Tankers Inc. Announces Financial Results for the Third Quarter of 2023, an Increase to its Quarterly Dividend, and Replenishment of its 2023 Securities Repurchase Program
- STNG Earnings this Week: How Will it Perform?
