Scorpio Tankers (STNG): Evaluating Valuation as Fleet Renewal and Modernization Reshape Growth Prospects

Scorpio Tankers (STNG) revealed a new round of fleet changes this week, agreeing to sell four older MR product tankers and acquire four newbuilds for delivery through 2027. This is a clear step toward renewing its fleet and boosting operational efficiency.

See our latest analysis for Scorpio Tankers.

Scorpio Tankers has seen its 30-day share price return jump 18.2%, while its 1-year total shareholder return sits at 21.4%. This comes after news of fleet expansion and a fresh quarterly dividend, indicating momentum is building as the company modernizes and aims for greater efficiency.

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With Scorpio’s shares rallying and the company moving decisively to modernize its fleet, the big question is whether the current price leaves room for further upside or if future gains are already reflected in today’s valuation.

Most Popular Narrative: 11.2% Undervalued

Scorpio Tankers’ fair value, according to the most widely followed narrative, stands at $72, which is well above its last close of $63.97. This sharp difference brings anticipated upside firmly into focus and hints at a bullish consensus built on a changing global shipping landscape.

Structural changes in global refining, including ongoing refinery closures in Europe and North America and limited new capacity additions, are increasing the average distance and complexity of refined products trade. This trend is steadily raising ton-mile demand and supporting higher utilization rates for Scorpio's modern fleet. This dynamic is likely to drive revenue growth and support long-term rate strength.

Read the complete narrative.

What are the bold expectations powering this price target? This narrative threads together global supply shifts with a surprisingly aggressive future profit blueprint. The real twist is that it hinges on a margin outlook and a future multiple that could catch even seasoned analysts off guard. Want to see which financial levers the narrative assumes Scorpio will pull in the years ahead? Uncover the figures driving this potential value surge.

Result: Fair Value of $72 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent regulatory pressures or a sudden increase in global tanker supply could quickly challenge the optimistic outlook that supports Scorpio’s current valuation.

Find out about the key risks to this Scorpio Tankers narrative.

Build Your Own Scorpio Tankers Narrative

If the consensus view does not reflect your take, or you want to dig into the data yourself, it only takes a few minutes to craft your own perspective, your way. Do it your way

A great starting point for your Scorpio Tankers research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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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.

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