Stifel analyst Benjamin Nolan downgrades $Scorpio Tankers (STNG.US)$ to a hold rating, and adjusts the target price from $90 to $65.
According to TipRanks data, the analyst has a success rate of 60.4% and a total average return of 15.1% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Scorpio Tankers (STNG.US)$'s main analysts recently are as follows:
The adjustment of expectations for Scorpio Tankers' earnings is influenced by a combination of milder product tanker rates and a marginal increase in vessel operating costs. These factors have prompted a revision of the earnings per share forecasts for the third quarter, as well as for the years 2024 and 2025, by 32%, 7%, and 6% respectively.
In the past four years, the shipping industry has experienced considerable strength, a marked change following a period of prolonged weakness. This robustness in the market is largely due to a combination of increased demand and a constrained supply chain. These conditions have been further intensified by geopolitical events, such as sanctions on Russia and disruptions in the Red Sea. While these contributing factors remain steadfast, with a reasonable supply of ships, albeit a rising one, the expectation is that the current drivers of demand may have reached their peak, at least in the short term. This could lead to a stabilization of shipping rates and potentially lower asset values within the industry. Consequently, a reassessment of the market's trajectory for the upcoming year is suggested, leading to a more cautious stance on certain dry bulk and tanker stocks.
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