IEA lifts annual crude output forecast amid OPEC+ production hike
Investing.com - Jefferies raised its price target on Scorpio Tankers (NYSE:STNG) to $70.00 from $65.00 on Monday, maintaining a Buy rating on the stock. The new target represents significant upside from the current price of $53.05, aligning with the broader analyst consensus that remains highly bullish on the stock.
The investment firm cited rising product tanker rates as a key factor behind the more bullish outlook, noting that Scorpio Tankers is positioned as "a prime beneficiary" of this market trend. According to InvestingPro data, the company maintains impressive gross profit margins of 62.89% and shows strong financial health with a "GREAT" overall score.
Jefferies highlighted that while equity markets have focused on crude tankers due to their direct exposure to rising OPEC+ exports, they have overlooked the fact that refiners will have more product cargoes to ship. The company’s strong positioning is further supported by its 13-year track record of consistent dividend payments and healthy liquidity position. Want deeper insights? InvestingPro offers 15+ additional expert tips and comprehensive analysis for STNG.
The firm had previously identified Scorpio Tankers as one of its favorite picks for the second half of 2025 in June, and now expresses stronger conviction that "the shares have plenty of room to run."
Product tanker rates are trending higher according to Jefferies’ analysis, supporting the more optimistic price target for the shipping company.
In other recent news, Scorpio Tankers Inc . reported its second-quarter 2025 earnings, surpassing analysts’ expectations. The company’s earnings per share reached $1.41, significantly beating the projected $1.12. Additionally, revenue exceeded forecasts, coming in at $230.23 million compared to the anticipated $217.73 million. In another development, Scorpio Tankers announced a five-year charter agreement for its LR2 product tanker, STI Orchard, at $28,350 per day, commencing in the third quarter of 2025. The company also updated its current Time Charter Equivalent revenue rates, with its LR2 vessels averaging $32,700 per day in the pool and spot market for the third quarter of 2025 to date. These recent developments highlight Scorpio Tankers’ robust financial performance and strategic moves in the maritime industry.
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