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UPDATE: RS Platou Markets Raises Scorpio Tankers PT to $13 on Continued Fleet Expansion

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In an RS Platou Markets report published Wednesday, analyst Frode Mørkedal maintained his Buy rating on Scorpio Tankers Inc. (NYSE: STNG) and increased its price target from $12 to $13.

Mørkedal commented, "STNG repeated its consistent story yesterday with additions both to the orderbook and the charter-in fleet. The IPO fleet of 3 vessels in March 2010 will count 47 vessels when all newbuilds are delivered by end-2014. The 6x LR2 ordered yesterday increase the recovery upside and our 2015 EPS by 15%, consequently we raise our target to USD 13/sh. We expect further fleet growth as liquidity from the recent equity raise is put to work. Multiple industry sources also confirm that asset prices are moving up 8-10%, if correct STNG NAV will increase to ~USD 8/share. We view earnings as the key driver, and estimate EPS of USD 1.3 in 2015 from the current fleet. A demand driven scenario with further fleet growth of 6x LR2 could more than double EPS compared to our base case scenario."

Scorpio Tankers closed Wednesday at $8.86.




Follow Alex Biles on Twitter at @perfectlyaloof

Latest Ratings for STNG

DateFirmActionFromTo
Feb 2018Credit SuisseMaintainsOutperformOutperform
Feb 2018Morgan StanleyMaintainsOverweightOverweight
Dec 2017JefferiesAssumesBuyBuy

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