Scorpio Tankers upgraded to Buy at BofA on accelerating cash generation

As previously reported, BofA analyst Ken Hoexter upgraded Scorpio Tankers (STNG) to Buy from Neutral with a price target of $60, up from $49. Scorpio increasing product tanker rates demonstrates counter-seasonal strength into the start of Q3, which is a good signal for the “typically strong Fall season,” says the analyst, who expects rates to continue increasing in Q4 due to seasonality as well as tightened supply/demand. The firm, which increased its Q3, 2025, and 2026 EPS estimates 39%, 7%, and 28%, respectively, sees Scorpio accelerating cash generation as product tanker rates increase.