BTIG analyst Gregory Lewis reiterated a Buy rating on Scorpio Tankers (STNG – Research Report) today and set a price target of $80.00.
Geoff Meacham has given his Buy rating due to a combination of factors affecting the performance and outlook of Scorpio Tankers. The recent spike in Atlantic Medium Range (MR) product tanker rates, driven by seasonal demand and logistical constraints at the Panama Canal, has created an advantageous situation for the company. Scorpio Tankers has been able to secure lucrative spot voyage rates significantly above average, which bodes well for its revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) in the upcoming quarter.
Further bolstering this optimistic view, Scorpio Tankers has demonstrated an ability to capitalize on favorable market conditions, with a portion of its fourth-quarter revenue booked at higher than anticipated rates. The company’s strategic focus on reducing debt and returning value to shareholders through dividends and stock buybacks is another factor contributing to the Buy rating. With a robust outlook for tanker rates and a strong operational strategy, Scorpio Tankers is well-positioned for sustained financial performance, justifying the analyst’s positive recommendation.
Lewis covers the Energy sector, focusing on stocks such as International Seaways, TechnipFMC, and Frontline. According to TipRanks, Lewis has an average return of -3.3% and a 43.76% success rate on recommended stocks.
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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 price target raised to $70 from $62 at Deutsche Bank
- 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
