Scorpio Tankers (Buy, TP: USD21.00) - Trough in rear-view mirror
Despite negative estimate revisions for 2021, our outlook beyond this year is unchanged. In our view, the worst should be behind us, as the Q4 TCE rate guidance was up QOQ. Scorpio Tankers is actively addressing its liquidity position, which in combination with rising rates – and healthy fuel spreads – leaves us optimistic on the company’s near-term outlook. At a P/NAV of 0.8x, we find the valuation attractive and reiterate our BUY, with an unchanged target price of USD21.0.
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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