BofA Securities upgraded Scorpio Tankers (NYSE:STNG) to Buy from Neutral and raised its price target to $60 from $49, citing accelerating cash generation and strong tanker rate trends. Shares gained more than 3% in premarket trading today
The analysts said product tanker rates had shown counter-seasonal strength entering the third quarter, which they viewed as a positive indicator heading into the fall. They projected rates would continue to rise in the fourth quarter due to seasonality, tighter supply-demand dynamics from unwinding OPEC+ cuts, and European sanctions on Russian exports.
BofA raised its EPS estimates for Scorpio Tankers by 39% for Q3 2025, 7% for FY25, and 28% for FY26, supported by stronger-than-expected earnings momentum.
