Scorpio Tankers Minor model adjustments
We have updated our estimates, reflecting the Q1 report, Q2 bookings, new charter announcements and other minor model adjustments. We do not consider these changes to be material, and we have not changed our BUY recommendation. We have lowered our target price from USD72 to USD71.Discounted entry to attractive tanker markets. We have raised our 2025e EBITDA by 2% and 2026–2027e by 1%. We continue to highlight the attractive upside potential in tankers on potential catalysts such as the US’s ‘maximum pressure’ on Iran redirecting oil flows to the conventional fleet and a more aggressive phase-in of OPEC+ volumes. Furthermore, for Scorpio Tankers, the current valuation (0.56x EV/GAV) implies a 5-year-old MR around its 15-year low, representing a reinforced compelling entry point for the tankers segment, we believe.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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