
Scorpio Tankers (STNG) Stock Forecast & Price Target
Scorpio Tankers (STNG) Analyst Ratings
Bulls say
Scorpio Tankers Inc. is positioned favorably in the product tanker sector, benefiting from an anticipated increase in product tanker rates as the industry approaches its peak winter earnings period, following a cycle of refinery maintenance. With a fleet comprised exclusively of eco-friendly and modern tankers, the company is well-suited to capitalize on rising demand for seaborne transportation of refined petroleum products. Additionally, higher OPEC+ crude exports are expected to lead to increased refinery runs, which will likely bolster revenue generation and enhance the overall profitability of the product tanker market, aligning with Scorpio Tankers' major revenue source from LR2 vessel segments.
Bears say
Scorpio Tankers Inc. has faced a modest share price increase of only 7% this year, which is deemed unjustified considering its operational performance and competitive margins compared to industry peers. The company’s conservative dividend strategy aimed at long-term financial stability may dampen immediate shareholder returns, contributing to investor skepticism. Additionally, fluctuations in oil volumes directly impact charter rates, introducing significant variability and risk to future revenue projections, particularly given that a substantial portion of the company’s earnings is derived from its LR2 segment.
This aggregate rating is based on analysts' research of Scorpio Tankers and is not a guaranteed prediction by Public.com or investment advice.
Scorpio Tankers (STNG) Analyst Forecast & Price Prediction
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