STNG: Fleet Optimization And Aging Global Supply Will Fuel Positive Market Momentum

Scorpio Tankers' analyst price target was raised from $72 to $73.25 per share. Analysts pointed to improved revenue growth forecasts and a positive tanker market setup as the reasons for the upward revision.

Analyst Commentary

Recent research updates highlight ongoing optimism in the outlook for Scorpio Tankers. Some analysts note areas of caution due to fleet changes and earnings adjustments. Below, we summarize the main bullish and bearish takeaways reflected in the latest analyst commentary.

• Bullish analysts consistently increased their price targets, supported by expectations of improved market conditions for product tankers heading into the winter season.
• Recent strategic fleet actions, including the sale of older vessels and acquisition of newbuilds, are viewed as value accretive and position the company well for long-term growth.
• Underlying supply and demand dynamics are favorable, with global oil consumption growth and tightening capacity from an aging global tanker fleet supporting higher utilization and earnings potential.
• Geopolitical factors, such as tensions in key shipping lanes and sanctions, are driving increased ton-mile demand and providing positive pricing momentum for Scorpio Tankers’ core markets.

• Some analysts have slightly reduced their earnings estimates for future years, citing a lower fleet count following planned asset sales and delays in the delivery of new vessels.
• Reduced revenue days from a smaller operating fleet could temporarily moderate growth, impacting near-term top-line and earnings projections.
• Despite generally favorable market views, some note that revenue estimates for the next two fiscal years have been adjusted moderately lower in light of the ongoing fleet optimization.
• There is a note of caution that the company’s accelerated fleet modernization may create execution risk during the transition period, requiring careful management to maintain operational momentum.

What's in the News

• Signed letters of intent to construct two Very Large Crude Carriers at Hanwha Ocean Co. Ltd., South Korea, with deliveries expected in the third and fourth quarters of 2028. Each vessel is priced at $128 million. The company has also agreed to purchase four MR newbuildings with deliveries in 2026 and 2027 and two VLCC newbuildings scheduled for the second half of 2028 (Key Developments).
• Entered agreements to sell four 2014 built scrubber-fitted MR product tankers, with sales scheduled to close in the first quarter of 2026, and to purchase four new MR product tankers under construction for delivery between 2026 and 2027 (Key Developments).
• The Board of Directors declared a quarterly cash dividend of $0.42 per common share, with a payment date of December 5, 2025, for shareholders of record as of November 14, 2025 (Key Developments).
• Agreed to sell the 2020 built MR product tanker STI Maestro for $42 million, with the sale expected to close in the fourth quarter of 2025 (Key Developments).

Valuation Changes

• Consensus Analyst Price Target has risen slightly, increasing from $72 to $73.25 per share.
• Discount Rate has fallen modestly, moving from 9.31 percent to 8.98 percent.
• Revenue Growth assumptions have improved significantly, shifting from negative 0.20 percent to positive 3.23 percent.
• Net Profit Margin projections have declined somewhat, from 35.89 percent to 34.53 percent.
• Future P/E Ratio has decreased, moving from 13.63x to 12.90x.