Scorpio Tankers STNG Receives Buy Rating Upgrade from StockNews.com

The shipping industry stalwart, Scorpio Tankers Inc. STNG, received a positive nod from analysts when StockNews.com upgraded the company from a "hold" to a "buy" rating. This shift in investment outlook, made public in a recent Friday report, reflects a growing assurance in the company's market performance.

Analyst Opinions on Scorpio Tankers

Several investment analysts have taken a fresh look at STNG. Notably, Bank of America changed their stance to "neutral" from "buy" and adjusted their price target down to $45.00 from $60.00. Meanwhile, Deutsche Bank Aktiengesellschaft elevated their price objective for STNG from $55.00 to $61.00, sustaining a "buy" rating. Moreover, JPMorgan Chase & Co. slightly reduced their price goal from $85.00 to $83.00, yet maintained an "overweight" rating on the stock.

In the wake of these assessments, Stifel Nicolaus reduced their target price from $77.00 to $71.00, while also keeping a "buy" recommendation. With one analyst holding a "hold" rating and six others advocating a "buy" rating, the aggregate market sentiment mirrors a "Moderate Buy" position for Scorpio Tankers, with an average price target of $69.43, as compiled by data from MarketBeat.com.

STNG's Stock Performance and Earnings

On the mentioned Friday, shares of STNG opened at $58.58. The company has been performing steadily, with a 50-day moving average of $53.85 and a 200-day moving average of $49.51. Scorpio Tankers has previously hit a one-year low and high of $40.34 and $64.20, respectively, and now boasts a market capitalization of $3.19 billion. The firm's price-to-earnings (PE) ratio stands at 4.89, exhibiting an attractive price-to-earnings-growth (PEG) ratio of 0.18 and a conservative beta of 0.34.

STNG's most recent quarterly earnings report showcased an EPS of $1.91, surpassing the predicted $1.60 by a notable margin. The company realized a net margin of 46.07% and a return on equity standing at 27.42%. Despite a year-over-year quarterly revenue drop of 40.6%, Scorpio Tankers still managed a revenue figure of $291.20 million, exceeding the anticipated $277.96 million. For the current fiscal year, Scorpio Tankers is estimated to reach an earnings per share of 9.41.

Institutional Investors and Scorpio Tankers

Scorpio Tankers has observed varying levels of engagement from institutional investors. Rubric Capital Management LP established a new position, investing $135,401,000 in the first quarter. Meanwhile, Healthcare of Ontario Pension Plan Trust Fund upped their stake by 165.3%, owning 1,080,000 shares valued at around $60,815,000. Reflecting the interest of substantial investors, Millennium Management LLC amassed an 810.7% increase in STNG shares, equating to a holding of 553,021 shares worth $19,085,000.

With 66.82% of the company's stock under institutional control, Scorpio Tankers draws considerable interest from the investment community, signaling overarching optimism in its operating model and potential.

About Scorpio Tankers

STNG, headquartered in Monaco, focuses on the international seaborne transportation of refined petroleum products. As of March 23, 2023, the company's fleet was comprised of 113 vessels—39 LR2, 60 MR, and 14 Handymax—exhibiting a moderate average age of 7.2 years, indicative of a balance between stability and modernity.

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