BofA Securities analyst Ken Hoexter raised the price target on Scorpio Tankers (NYSE: STNG) to $70.00 (from $61.00) while maintaining a Underperform rating.

The analyst commented, "We increase our 1Q26/'26e EPS estimates for Scorpio Tankers by 17%/3% to $2.73/$6.35 (from $2.33/$6.15), given a surge in product tanker rates amid US-Iran attacks (which offset lower fleet count/net revenue days following STNG’s sale of three vessels). We have seen a near shutdown in all vessels transiting the Strait of Hormuz (Clarksons estimates a >90% drop in vessels). As such, we increase our 1Q26 LR2 target to $47k/day, from $43k/day, and increase our 1Q26 MR target to $27.7k/day, from $25.7k/day. We target 1Q avg fleet rate to increase 23% sequentially to $34.7k/day. While further short-term disruptions are possible, vessel traffic through the Strait of Hormuz has never faced extended periods of disruption, even during past conflicts (e.g. ‘tanker wars’ of 1980s)... We maintain our Underperform rating, yet raise our PO to $70 (from $61), as we move to a 6.0x target multiple on our ‘26e EBITDA estimate (from 5.25x). We increase our target multiple given near term momentum in product tanker rates, yet our multiple remains below the midpoint of its 5-year range (4.5x-8.5x) due to a rising capacity view, the potential unwind of sanctions on Russia, and our view of peak rates."