UPDATE: DNB Markets Initiates Coverage on Scorpio Tankers

According to a research report published this morning, DNB Markets has initiated Scorpio Tankers

with a Buy rating and $7.80 PT. In the report, DNB Markets commented, "Scorpio is trading at 1.2x our NAV and we believe a premium is justified given our expectations of a recovery in the product tanker market following three years of MR product tanker rates in line with opex. Scorpio is a pure product tanker company, with high spot exposure, and is highly leveraged to a market recovery. It recently sold three vessels and raised USD37m in equity to strengthen the balance sheet. We argue that the product tanker market has a far more attractive balance than the crude tanker market." Scorpio Tankers closed yesterday at $6.90.