Wall Street Bullish on Scorpio Tankers (STNG) as Company Signs New Charter Agreements

Scorpio Tankers Inc. (NYSE:STNG) is one of the 10 cheapest oil and gas stocks to invest in. According to the company’s announcement dated January 5, it has entered into five-year time charter agreements for two of its LR2 product tankers, STI Rose and STI Alexis. Both tankers were constructed in 2015 at a daily rate of $29,000 per vessel. The charters are scheduled to begin in the first quarter of 2026.

oil tanker

The company currently owns or leases a fleet of 93 product tankers with an average age of 9.8 years. Its fleet consists of 42 MR tankers, 14 Handymax tankers, and 37 LR2 tankers. The firm has also agreed to sell three LR2 product tankers, with closings expected in the first quarter of 2026. In addition to this, the company has 4 MR newbuildings expected to be delivered in 2026 and 2027, two LR2 newbuildings due in the third quarter of 2027, and two VLCC newbuildings with planned delivery in the second half of 2028.

On January 2, BTIG analyst Gregory Lewis reaffirmed a Buy rating on the stock, along with the price target of $75. The firm’s price target implies a further 36.4% upside from the current levels. This upside is consistent with the median Wall Street analysts’ upside of 35%.

Scorpio Tankers Inc. (NYSE:STNG) is engaged in the seaborne transportation of refined petroleum and crude oil products globally. Its fleet consists of 99 owned and leased financed tankers as of March 20, 2025. The company was founded in 2009 and is based in Monaco.

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Disclosure: None. This article is originally published at Insider Monkey.