BTIG has increased its price objective for Scorpio Tankers (NYSE: STNG) to $80.00 from $75.00 and retained a Buy recommendation on the shares. The move follows unexpectedly robust spot market conditions for crude and product tankers that BTIG highlighted in its analyst research.
BTIG analyst Gregory Lewis pointed to crude tanker spot rates averaging roughly $100,000 year-to-date - nearly double the level recorded in the comparable period last year. Product tanker spot rates are also notably higher, with MR product vessel averages of around $30,000 year-to-date, up about 50% from the prior year, according to the firm.
The strength in freight rates has helped lift the entire tanker complex. BTIG noted that tanker equities have risen in a range of roughly 15% to 30% year-to-date. The sector is trading at about seven times 2026 EBITDA multiples based on the firm’s assessment.
BTIG expects that multiples for tanker stocks could expand further. The firm cited several drivers that could support valuation expansion - a de-risking of consensus EBITDA forecasts, firmer vessel values, growing shareholder returns, and what it described as an attractive supply-demand picture over the next two years.
Alongside Scorpio Tankers, BTIG raised price targets for other publicly traded tanker operators while keeping Buy ratings intact. DHT (NYSE: DHT) had its target increased to $18 from $16, Frontline (NYSE: FRO) was moved to a $35 target, and International Seaways (NYSE: INSW) saw its target lifted to $70.
International Seaways is trading at $61.02 in the most recent quote cited, up 25.7% year-to-date and just below a 52-week peak of $61.20. The company was described as trading near its fair value, with a reported P/E ratio of 13.86 and a "GREAT" financial health score per InvestingPro. That service also indicates there are 13 additional investment tips and further metrics in its Pro Research Report for subscribers.
BTIG’s note on DHT reflected the same market backdrop, with crude tanker spot rates - including VLCCs - running about $100,000 year-to-date, nearly double last year’s levels. The firm also highlighted that vessels fitted with exhaust gas cleaning systems - scrubbers - are earning roughly $10,000 more than non-scrubber-equipped ships.
In related fleet-level activity, International Seaways announced the sale of five older vessels for about $185 million net of commissions and fees. The disposal comprises three MR tankers with an average age of 18 years and two VLCCs averaging 15 years, part of a broader pattern of asset rotations and strategic adjustments in the crude oil transport sector.
The combination of sharply higher spot earnings, asset sales and targeted capital-return expectations underpins BTIG’s revised valuations and positive recommendations across several names in the tanker group.