BTIG on Thursday raised its price objective for Scorpio Tankers (NYSE:STNG) to $85.00 from $80.00 and maintained a Buy rating on the shares. The upgrade comes as the stock is trading near its 52-week high of $70.96 and has produced a year-to-date gain of 37.5%. InvestingPro data cited in coverage describes the shares as appearing slightly undervalued relative to a Fair Value assessment.
On the operating front, Scorpio reported EBITDA of approximately $132 million, aligned with Street expectations. Management’s forward bookings for the company’s spot fleet show meaningful coverage: roughly 70% of LR2 days are fixed at about $43,000 and roughly 63% of MR days are locked in at about $32,000. These forward booking levels sit above the fleet’s recent spot performance in the fourth quarter, when LR2s averaged about $34,000 and MRs averaged about $24,000.
BTIG highlighted regional differences in MR performance, noting current averages near $41,000 in the Atlantic and about $26,000 in the Pacific. Those figures were presented alongside InvestingPro’s assessment of Scorpio’s financial profile, which is rated as "GREAT," with a P/E ratio of 11.71 and gross profit margins of 62.7%.
Shareholder returns remain a focus. Scorpio increased its quarterly dividend by roughly 7% to $0.45 per share, equating to an approximate 3% annualized yield. During the quarter the company returned about $22 million to shareholders, representing roughly 18% of operating cash flow. BTIG pointed out that a majority of Q1 spot trading days were fixed at levels above the Q4 baseline and that current spot rates are exceeding quarter-to-date bookings.
On that basis the research firm contends Scorpio is positioned to continue returning cash to shareholders. The company has about $173 million remaining under its share buyback program, and management has been actively repurchasing stock, an action noted as a positive indicator by InvestingPro.
Scorpio’s balance sheet developments were highlighted as well. The company reported a pro forma net cash position of $382.7 million as of January 2026, in contrast to a net debt position of $293.4 million as of September 2025. In connection with a fleet adjustment strategy, Scorpio announced the sale of its LR2 product tanker, STI Kingsway, for $57.5 million. That sale is expected to close in the first or second quarter of 2026.
Analyst views beyond BTIG show some divergence. BofA Securities downgraded Scorpio from Buy to Underperform and reduced its price target to $53.00, citing concerns that earnings may be approaching peak levels. Separately, another BTIG note maintained a Buy rating but listed a $75.00 price target for the company, pointing to strong market conditions and increased timecharter activity.
Peer and market context was also referenced in coverage: International Seaways received a BTIG price target boost to $70.00 from $60.00 while keeping a Buy rating, an adjustment attributed to crude tanker spot rates that have materially outperformed expectations, with VLCC spot rates averaging $100,000 year-to-date.
Taken together, BTIG’s move to raise its price target to $85 reflects confidence in near-term rate momentum, forward booking coverage and an improving balance sheet that supports dividends and buybacks. At the same time, contrasting analyst opinions and the potential for rates to pass a peak underscore remaining uncertainty in the tanker cycle.