UPDATE: Imperial Capital Initiates Outperform, $8.75 PT on Scorpio Tankers; Tanker Pure Play
Imperial Capital initiates an Outperform rating with a price target of $8.75 a share on Scorpio Tankers (NYSE: STNG).
Imperial Capital comments, "We are initiating coverage of Scorpio Tankers with an Outperform rating on the common stock and a one-year price target of $8.75, which represents 56% potential upside from current levels. Scorpio is a pure play in product tankers, which transport refined oil products across the world. We believe the fundamentals in the product tanker market are improving and could lead to significant earnings upside for Scorpio given the young age of the expanding fleet and significant spot exposure. Additionally, we think the company has the liquidity and balance sheet to withstand the current volatility and position itself as a leading player in the product tanker market. At a recent stock price of $5.60, we believe Scorpio is trading below net asset value of $7.34."
STNG closed at $5.60 on Wednesday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.