Evercore revises target down but keeps favorable view
Evercore ISI has lowered its price objective for Scorpio Tankers to $83.00 from $86.00 and retained an Outperform rating on the company. The analyst move comes amid a mix of operational strength and higher corporate spending projections. Scorpio Tankers was trading at $70.48 at the time of the note, roughly 1% shy of its 52-week high of $71.48, after the stock delivered a 57% return over the trailing 12 months.
Quarterly performance and margin resilience
Scorpio reported adjusted earnings per share of $1.70 for the fourth quarter of 2025, outpacing Evercore's $1.55 estimate and the consensus Street estimate of $1.58. The company benefited from stronger-than-expected spot rates across multiple asset classes, which helped sustain profitability. Scorpio registered gross profit margins of 65.4%, underscoring the company's ability to generate healthy returns despite spot-market volatility.
Evercore noted that higher-than-anticipated general and administrative expenses are a countervailing force to the top-line tailwind from spot rates. The bank adjusted its EPS forecasts accordingly, bringing 2026 estimates to $8.00 from $8.61 and trimming the 2027 figure to $5.55 from $5.76.
Cash position, dividends and fleet actions
The company raised its dividend for a second consecutive quarter to $0.45 per share. Scorpio's balance sheet has shifted markedly in recent years, with a net cash position of $309 million reported in the most recent update versus a net debt position of $3 billion four years earlier. Management has been selling older vessels while introducing newbuildings to the fleet and recently declared options on two additional LR2 vessels scheduled for 2029 delivery.
Scorpio's dividend yield stands at 2.48%, and the company has sustained dividend payments for 14 consecutive years. The firm operates with a moderate reported debt-to-equity ratio of 0.29. An InvestingPro Fair Value assessment referenced in reporting characterizes the stock as slightly overvalued at current market levels, while assigning a financial health score labeled as "GREAT" with an overall rating of 3.07.
Fleet exposure and contract mix
At year-end, Scorpio had 91 vessels trading in the spot market while 17 ships were employed on time-charter contracts. First-quarter-to-date spot rates were stronger than Evercore expected; however, the firm emphasized that that benefit is tempered by its projection of elevated G&A costs. In other operational reporting, Scorpio disclosed an EBITDA of roughly $132 million for the period cited, in line with Street expectations.
Recent balance sheet moves and asset sale
The company reported a pro forma net cash position of $382.7 million as of January 9, 2026, improving from a net debt balance of $293.4 million in September 2025. As part of fleet optimization, Scorpio sold the STI Kingsway, a 2015-built LR2 product tanker, for $57.5 million. These actions form part of a broader strategy to refresh the fleet while capturing value from older tonnage.
Peer activity and market backdrop
BTIG has maintained a Buy rating on Scorpio Tankers and raised its price target to $85 from $80, citing increased timecharter activity and a generally optimistic view of market dynamics. BTIG also raised a price target for International Seaways to $70 on the back of strong crude tanker spot rates, noting that very large crude carrier rates have averaged $100,000 year-to-date and that scrubber-equipped vessels are earning a premium. The companion analyst notes signal a positive market tone across tanker segments, even as company-level cost and valuation considerations diverge.
Takeaway
Evercore's decision to shave its price target reflects a reconciliation between encouraging operational metrics and an outlook for heightened corporate spending. Scorpio's robust margins, dividend policy and improving cash position support the case for a constructive view, while the analyst adjustments reflect caution about near-term expense trajectories and market valuation.