Ken Hoexter, an analyst from Bank of America Securities, reiterated the Buy rating on Scorpio Tankers. The associated price target was raised to $66.00.
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Ken Hoexter has given his Buy rating due to a combination of factors including Scorpio Tankers’ strategic asset sales and the favorable market conditions. The company recently sold three vessels for $164 million, which significantly reduced its net debt and strengthened its balance sheet. This move is seen as capitalizing on high secondary market vessel values, thereby improving the company’s financial position.
Additionally, the product tanker rates have shown unexpected strength due to geopolitical factors such as sanctions on Russian trade and shifts in refinery capacity. These conditions are expected to continue into the fourth quarter, potentially increasing Scorpio Tankers’ cash generation. Hoexter also raised the price objective to $66, reflecting a positive outlook based on the company’s strong asset values and improving market conditions.
In another report released on September 14, Jefferies also reiterated a Buy rating on the stock with a $70.00 price target.