B. Riley starts coverage of Scorpio Tankers stock at Buy

Scorpio Tankers (MHY7542C1306) was last at EUR 77.40 on Tradegate on October 5, 2026 at 1:03 p.m. CEST, up 1.10 percent from EUR 76.56. On the same date, B. Riley Securities initiated coverage with a Buy rating and a USD 120.00 price target, according to Markets Insider.

Fleet renewal gets a new shape

Scorpio Tankers announced agreements on September 29, 2026 to sell three product tankers and purchase four newbuilding vessels. The sales cover three existing ships for a combined USD 180.50 million, while the purchases include two LR2 tankers at USD 72.80 million each and two VLCCs at USD 135.00 million each, according to FinanzNachrichten. Deliveries are scheduled for 2028 and 2029, extending the fleet renewal timetable beyond the current earnings cycle.

The transaction changes the capital-allocation question. Scorpio Tankers is selling older vessels while adding larger ships, so future returns will depend on freight rates, vessel values and financing conditions rather than fleet growth alone.

Second-quarter earnings show operating leverage

In the second quarter of 2026, adjusted earnings per share reached USD 4.68, above the USD 4.51 consensus estimate, while adjusted net income was USD 243.70 million, according to Yahoo Finance. Time charter equivalent revenue rose 75.90 percent year over year to USD 391.80 million from USD 222.80 million in the same quarter of 2025.

Vessel revenue also increased 77.50 percent year over year to USD 408.70 million from USD 230.20 million. The comparison shows why tanker-rate exposure is central to the stock: higher realized rates can expand earnings quickly, but a reversal can compress the same operating leverage.

Analyst target leaves a wide gap

B. Riley's USD 120.00 target is USD 33.77 above the USD 86.23 last price on the NYSE at 4:00 p.m. EDT on October 6, 2026, a 39.17 percent premium calculated in the same currency. The broader analyst picture is less uniform: MarketBeat reported a Hold consensus from 11 analysts, with five Buy ratings, five Holds and one Sell, plus an average target of USD 91.57 on September 26, 2026, according to MarketBeat.

Tradegate quote stays above prior close

Scorpio Tankers was last at EUR 77.40 on Tradegate on October 5, 2026 at 1:03 p.m. CEST, versus a EUR 76.56 prior close on October 2, 2026, giving a plus 1.10 percent move. Price source: substitute price Tradegate, Lang & Schwarz without data set.

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