Scorpio Tankers (STNG) Management Meetings Confirm 2H or Sooner Recovery - Jefferies

Jefferies analyst Randy Giveans reiterated a Buy rating and $20.00 price target on Scorpio Tankers (NYSE: STNG) after hosting management for a series of client calls that provided more evidence of a product tanker market recovery in 2H21 or sooner. Management believes decreasing refinery capacity in Europe, the US, and Australia/New Zealand coupled with expanding capacity in the Middle East and Asia will result in additional ton-mile demand as products travel further to end users. Additionally, improving economic conditions and GDP growth in developing nations are expected to lead to increased demand for gasoline and other refined products which will be satisfied through imports. As a result, Jefferies believes ton-mile demand in 2021 could grow by 8-10%.

The analyst stated "In addition to an improving global economy, refinery closures in the EU, US, and AU/NZ coupled with capacity additions in the Middle East and Asia should boost ton-mile demand. Lastly, the supply picture remains very attractive."

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 $19.30 yesterday.

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