Evercore ISI has adjusted the price target for Scorpio Tankers (STNG, Financial), bringing it down to $60 from the previous $64, while maintaining an Outperform rating on the company's shares. This rating is part of a broader analysis on the tanker sector, where stocks are reportedly trading at valuation discounts that are typically seen only during liquidity or going concern crises. Despite the sector's robust balance sheets, investor interest remains subdued due to several challenges.
The analyst highlights growing concerns over a potential global recession, driven in part by stringent trade policies. This situation is impacting the oil demand outlook negatively, necessitating downward adjustments in expectations. Historically, tanker rates and related equities perform poorly in recessionary environments, adding to the current market pressures.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for Scorpio Tankers Inc (STNG, Financial) is $70.00 with a high estimate of $108.00 and a low estimate of $49.00. The average target implies an upside of 104.98% from the current price of $34.15. More detailed estimate data can be found on the Scorpio Tankers Inc (STNG) Forecast page.
Based on the consensus recommendation from 13 brokerage firms, Scorpio Tankers Inc's (STNG, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Scorpio Tankers Inc (STNG, Financial) in one year is $50.10, suggesting a upside of 46.71% from the current price of $34.15. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Scorpio Tankers Inc (STNG) Summary page.
