Bank of America Securities analyst Ken Hoexter reiterated a Hold rating on Scorpio Tankers yesterday and set a price target of $47.00.
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Ken Hoexter has given his Hold rating due to a combination of factors including slightly softer rates and a decrease in net revenue days. The analyst has adjusted the revenue estimates downward, reflecting a 4% reduction in the average time charter equivalent fleet rate to $25,000 per day and targeting 8,769 net revenue days, down from 8,869. This adjustment is influenced by the softer-than-expected LR2 and MR product tanker rates, which have led to a 5% reduction in the 2Q25 revenue target and a decrease in the full-year outlook.
Additionally, Scorpio Tankers has reduced its stake in DHT, a VLCC tanker owner, from 7.5% to 5.5%, which also factors into the Hold rating. Despite these challenges, Hoexter has raised the price objective for Scorpio Tankers’ shares to $47, up from $42, based on a forward-looking EBITDA estimate for 2026. The decision to maintain a Hold rating reflects a cautious approach, balancing the potential for cash generation against the backdrop of rising capacity and decelerating rates.