Scorpio Tankers price target raised to $88 from $80 at Pareto

Pareto raised the firm’s price target on Scorpio Tankers to $88 from $80 and keeps a Buy rating on the shares. The analyst remains encouraged by a “tight” product tanker market. While the global economy remains uncertain, continued periods of “refinery super-profits and growing East – West trade will boost demand,” the analyst tells investors in a research note. With its net debt set to reach fleet demolition value by mid-2024, “proper” dividends are a likely 2024 event for Scorpio but buybacks are “incredibly accretive in the meantime,” says Pareto.