Update shared on 30 Nov 2025
Fair value Increased 1.02%Scorpio Tankers' analyst price target has been increased from $73.25 to $74.00. Analysts cite a solid market outlook, recent fleet transactions, and favorable supply-demand dynamics as supporting factors for a marginally higher valuation.
Analyst Commentary
Recent analyst activity around Scorpio Tankers reveals a nuanced outlook characterized by both optimism and a measure of caution. Price targets have been consistently raised, and market trends continue to favor the company; however, certain risks remain highlighted in updated research notes.
Bullish Takeaways- Bullish analysts have raised price targets, citing transactions that streamline the fleet and improve Scorpio Tankers’ capital structure. These factors support higher future valuations.
- Continued global oil consumption growth and favorable supply-demand dynamics are projected to benefit product tanker operators, supporting estimates of steady earnings growth.
- Strong asset values and strategic fleet sales have reduced net debt, positioning the company for enhanced cash generation as product tanker rates improve into the seasonally stronger winter period.
- Geopolitical developments, including increased sanctions and regional conflicts, are driving higher ton-mile demand and tightening overall tanker market capacity. This trend provides a tailwind for charter rates and asset prices.
- Bearish analysts note that a reduced fleet count following recent asset sales and the timing of new vessel additions could modestly weigh on near-term earnings and revenue visibility.
- Lowered revenue and earnings estimates for upcoming years reflect concerns regarding the reduced number of operating days and the lag in newbuild deliveries.
- Market volatility tied to macroeconomic risks and evolving demand for tankers may introduce uncertainty around execution and growth trajectories.
- Aging fleet considerations and incremental capital requirements for modernization could affect margins and limit upside if market conditions soften unexpectedly.
What's in the News
- Scorpio Tankers has 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. The purchase price is $128 million per vessel. The company has also reached agreements for four MR newbuildings to be delivered in 2026 and 2027, as well as two additional VLCCs for delivery in the second half of 2028 (Key Developments).
- The company entered into agreements to sell four 2014 built scrubber-fitted MR product tankers for $32 million each, with sales expected to close in the first quarter of 2026. Scorpio has agreed to purchase four MR newbuilding resales, each priced at $45 million, with deliveries spanning from 2026 to 2027 (Key Developments).
- On October 29, 2025, Scorpio Tankers' Board of Directors declared a quarterly cash dividend of $0.42 per common share, payable on December 5, 2025, to shareholders of record as of November 14, 2025 (Key Developments).
- Scorpio Tankers announced the agreement to sell its 2020 built scrubber-fitted MR product tanker, STI Maestro, for $42 million. The transaction is expected to close in the fourth quarter of 2025 (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen slightly from $73.25 to $74.00.
- Discount Rate has decreased marginally from 8.98% to 8.96%.
- Revenue Growth projection has softened, falling from 3.23% to 3.03%.
- Net Profit Margin estimate has increased slightly from 34.53% to 34.74%.
- Future P/E ratio has risen from 12.90x to 14.17x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.