Scorpio Tankers Minor model adjustments
We have updated our estimates following the Q3 report and Q4 guidance. We have lowered our 2024e adj. EBITDA by 4% and 2025–2026e by 2%. We still see attractive cash flow potential (~21% FCF yield on our 2025e) and find the current P/NAV of ~0.70x (stock down ~20% since early October) supportive for continued capital returns through share buybacks and an attractive risk/reward. We do not consider our estimate changes to be material, and we have not changed our BUY recommendation. We reiterate our USD93 target price.
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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