Deutsche Bank Downgrades Scorpio Tankers (STNG) to Hold

November 15, 2016 7:05 AM EST
Get Alerts STNG Hot Sheet
Price: $4.33 --0%

Rating Summary:
    10 Buy, 5 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Deutsche Bank downgraded Scorpio Tankers (NYSE: STNG) from Buy to Hold with a price target of $4.00 (from $9.00).

Analyst Amit Mehrotra said, "The revisions reflect an over 10% decline in asset values over the last six months and further deterioration in operating cash flows. We also see increased potential for a dividend cut over the next several months, from limited balance sheet flexibility (we est. LTV of 77%) and stillsignificant newbuilding capex (for which mgmt. continues to negotiate financing). While the company maintains strong operating leverage to longterm healthy product tanker fundamentals, the near/mid-term outlook is more uncertain, in our view, given the continued weakness in rates."

For an analyst ratings summary and ratings history on Scorpio Tankers click here. For more ratings news on Scorpio Tankers click here.

Shares of Scorpio Tankers closed at $3.91 yesterday.

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