Core Viewpoint - Scorpio Tankers has been downgraded to Underperform from Buy by BofA Securities, with a reduced price target of $53 from $67, reflecting concerns over peak earnings and future rate declines [1][3] Group 1: Downgrade and Price Target - BofA Securities downgraded Scorpio Tankers, lowering the price target to $53, which is based on a 5.0x multiple applied to estimated 2026 EBITDA, down from a prior 6.0x multiple [1] - Following the downgrade, shares of Scorpio Tankers fell more than 3% intraday [1] Group 2: Management Decisions and Market Outlook - The decision by Scorpio Tankers to lock in additional time-charter contracts indicates that management perceives current tanker rates as nearing peak levels [2] - BofA also highlighted the potential for a peace agreement between Russia and Ukraine, which could release additional product tanker capacity and exert downward pressure on freight rates [2] Group 3: Earnings and Rate Trends - BofA views Scorpio Tankers' earnings as approaching peak levels, with expectations that rates will trend lower in the future, leading to the downgrade [3]