BofA Upgrades Scorpio Tankers To Buy, Stock Gains 3%

Core Viewpoint - BofA Securities upgraded Scorpio Tankers to Buy from Neutral, raising the price target to $60 from $49 due to accelerating cash generation and strong tanker rate trends [1] Group 1: Tanker Rate Trends - Product tanker rates have shown counter-seasonal strength entering the third quarter, indicating positive momentum for the fall [1] - Projected rates are expected to rise in the fourth quarter due to seasonality, tighter supply-demand dynamics from unwinding OPEC+ cuts, and European sanctions on Russian exports [1] Group 2: Earnings Estimates - BofA raised EPS estimates for Scorpio Tankers by 39% for Q3 2025, 7% for FY25, and 28% for FY26, reflecting stronger-than-expected earnings momentum [2]