UPDATE: RS Platou Markets Raises PT to $9 on Scorpio Tankers on Equity Raise, New Tanker Buys
RS Platou Markets reiterated its Buy rating on Scorpio Tankers (NYSE: STNG) and increased its price target from $8 to $9.
RS Platou Markets commented, "Scorpio Tankers announced yesterday that they have placed an order for 6x MR tankers in Korea with 2014 delivery and secured options for another 8 tankers. The equity raise was accretive on NAV while the fleet expansion is accretive on mid-cycle earnings. Consequently we raise our target price to USD 9 per share and reiterate our view that STNG is a favourite pure product tanker play, with sound market recovery upside."
Scorpio Tankers closed at $6.60 on Tuesday.
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