Jefferies analyst Omar Nokta reiterated a Buy rating on Scorpio Tankers today and set a price target of $70.00.
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Omar Nokta has given his Buy rating due to a combination of factors that highlight the potential for Scorpio Tankers to benefit from current market conditions. The analyst notes that product tanker rates are on an upward trend, with Scorpio Tankers positioned as a significant beneficiary due to increased refinery runs and product cargoes. This positive outlook is further supported by the expectation of higher seaborne oil flows in the coming quarters, which could drive Scorpio Tankers’ earnings per share back to levels seen in previous years.
Additionally, Nokta points out that Scorpio Tankers’ current valuation is compelling, trading at a discount compared to its net asset value, especially when compared to its peers. With the company on track to become net debt-free by spring 2026, there is an anticipated revaluation closer to its net asset value. These factors, combined with the raised price target to $70, underpin the Buy rating reiterated by Nokta.
According to TipRanks, Nokta is ranked #491 out of 9976 analysts.
In another report released today, Bank of America Securities also upgraded the stock to a Buy with a $60.00 price target.