Bank of America Downgrades Scorpio Tankers (STNG) as Freight Rates Near Peak Levels

Scorpio Tankers Inc. (NYSE:STNG) is included among the 15 Dividend Growth Stocks with the Highest Growth Rates.

On January 9, Bank of America downgraded Scorpio Tankers Inc. (NYSE:STNG) to Underperform from Buy and acceptable a $53 terms target. The steadfast said Scorpio has been locking successful much time-charter agreements, which is often a motion absorption believes spot marketplace rates are adjacent a peak. BofA besides pointed to the anticipation of a Russia-Ukraine bid statement successful the twelvemonth ahead, arguing that it could displacement marketplace dynamics and instrumentality unit disconnected tanker rates. With those factors successful mind, the expert said net look person to highest levels and expects freight rates could inclination little from here.

In different news, connected January 13, Scorpio shared an update connected its liquidity, indebtedness position, and upcoming newbuilding commitments. The institution said it had $783.9 cardinal disposable nether its revolving recognition facilities arsenic of January 9, 2026.

Scorpio has besides been progressive connected the portfolio and plus side. Since October 28, 2025, the institution sold its remaining 3,551,794 shares successful DHT Holdings astatine an mean terms of $13.40 per share. It has besides continued selling vessels. In November 2025, the institution completed the antecedently announced merchantability of the 2020-built MR tanker STI Maestro for $42.0 million. The institution besides sold 3 2014-built MR tankers- STI Battery, STI Venere, and STI Milwaukee- for $32.0 cardinal each.

In aboriginal December 2025, Scorpio closed 2 much antecedently announced deals, selling the 2014-built MR tanker STI Yorkville for $32.0 million, and the 2019-built LR2 tanker STI Lobelia for $61.2 million.

Scorpio Tankers Inc. (NYSE:STNG) is simply a planetary shipping institution focused connected transporting refined petroleum products. It presently owns oregon leases 93 merchandise tankers, including 37 LR2 vessels, 42 MR tankers, and 14 Handymax tankers, with an mean fleet property of 9.8 years.

While we admit the imaginable of STNG arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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