Noah Parquette on Wednesday changed his rating for the New York-quoted stock from “hold” to “buy” and set a price target of $11.00, which represents a $2.00 hike.
In a note to clients the forecaster said the upgrade reflects what he described as the “changing fundamentals” of supply and demand in Scorpio’s core markets.
“For product tankers, we are becoming much more constructive as we see supply headwinds abating over the next six to 12 months, and with new refineries coming online in China, India, and the Middle East, we expect rates to continue to strengthen,” he added.
Parquette
