Scorpio Tankers Inc. (NYSE:STNG) Just Reported, And Analysts Assigned A US$69.60 Price Target

Shareholders might have noticed that Scorpio Tankers Inc. (NYSE:STNG) filed its annual result this time last week. The early response was not positive, with shares down 6.3% to US$44.13 in the past week. Scorpio Tankers reported US$1.2b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$13.15 beat expectations, being 3.7% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Scorpio Tankers

Taking into account the latest results, the current consensus, from the nine analysts covering Scorpio Tankers, is for revenues of US$946.2m in 2025. This implies a stressful 24% reduction in Scorpio Tankers' revenue over the past 12 months. Statutory earnings per share are forecast to plummet 57% to US$6.20 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$1.04b and earnings per share (EPS) of US$6.06 in 2025. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power.

The analysts have cut their price target 5.9% to US$69.60per share, suggesting that the declining revenue was a more crucial indicator than the expected improvement in earnings. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Scorpio Tankers at US$108 per share, while the most bearish prices it at US$49.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 24% annualised decline to the end of 2025. That is a notable change from historical growth of 16% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.5% per year. It's pretty clear that Scorpio Tankers' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Scorpio Tankers' earnings potential next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. With that said, earnings are more important to the long-term value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Scorpio Tankers' future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Scorpio Tankers going out to 2027, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 3 warning signs for Scorpio Tankers (1 can't be ignored!) that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.