Scorpio Tankers, the Energy sector company, was revisited by a Wall Street analyst yesterday. Analyst Ken Hoexter from Bank of America Securities reiterated a Buy rating on the stock and has a $73.00 price target.
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Ken Hoexter has given his Buy rating due to a combination of factors including Scorpio Tankers’ strategic fleet management and market conditions. The company has sold four of its MR product tankers for a total of $128 million and is acquiring four newbuild MR vessels for $180 million. This move is expected to enhance the fleet’s age profile and quality, aligning with the company’s strategy to renew its fleet while capitalizing on favorable market sell rates.
Despite a slight reduction in revenue estimates for 2026 and 2027 due to a lower fleet count, the outlook remains positive. The company anticipates stronger product tanker rates driven by tighter supply dynamics and less competition from uncoated tankers. With an expected increase in average TCE rates, the price objective for Scorpio Tankers’ shares has been raised to $73, reflecting a 6.0x revised 2026 EBITDA estimate. This valuation considers the balance between increasing rates, improved vessel values, and cash generation against the backdrop of peak rates and rising capacity.
According to TipRanks, Hoexter is a 3-star analyst with an average return of 2.2% and a 48.80% success rate. Hoexter covers the Industrials sector, focusing on stocks such as CSX, FedEx, and CH Robinson.
In another report released on November 3, Evercore ISI also maintained a Buy rating on the stock with a $80.00 price target.