Jefferies Reiterates a Buy Rating on Scorpio Tankers Inc.

By Austin Angelo

In a report issued on November 14, Douglas Mavrinac from Jefferies reiterated a Buy rating on Scorpio Tankers Inc. (NYSE: STNG), with a price target of $6. The company’s shares closed yesterday at $4.04, close to its 52-week low of $3.61.

Mavrinac wrote:

“This morning, Scorpio Tankers reported an adjusted 3Q16 EPS loss of $0.11 which was in-line with our estimate as the Company’s lower than expected voyage revenues earned during the quarter were offset by lower than expected vessel opex and G&A expense incurred during the quarter.”

According to TipRanks.com, Mavrinac is a 5-star analyst with an average return of 10.5% and a 59.2% success rate. Mavrinac covers the Services sector, focusing on stocks such as Navios Maritime Partners Lp, Ship Finance International, and Golden Ocean Group Limited.

Scorpio Tankers Inc. has an analyst consensus of Moderate Buy, with a price target consensus of $6.

Based on Scorpio Tankers Inc.’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $114 million and GAAP net loss of $27.12 million. In comparison, last year the company earned revenue of $228 million and had a net profit of $85.25 million.

Scorpio Tankers, Inc. engages in the provision of marine transportation of petroleum products worldwide. The company operates through the following business segments: Handymax, MR, Panamax/LR1, and Aframax/LR2. The Handymax segment includes the vessels STI Conqueror, STI Matador, STI Gladiator, and STI Highlander. The MR segment comprises the vessels STI Coral and STI Diamond. The Panamax/LR1 segment constitutes the vessels STI Harmony and STI Heritage. The Aframax/LR2 segment includes the vessels STI Spirit and Khawr Aladid. The company was founded by Emanuele A. Lauro on July 1, 2009 and is headquartered in Monaco.