Why Scorpio Tankers Stock Crushed It on Monday

Key Points

• An analyst upgraded his recommendation on the sea transportation company.

• He now feels the stock is a buy, with attractive potential upside.

• 10 stocks we like better than Scorpio Tankers ›

It was more than smooth sailing for the stock of maritime logistics specialist Scorpio Tankers (NYSE: STNG) on Monday. A recommendation upgrade from an analyst at a very well-known bank powered the company's equity that trading session, sending it to a nearly 11% increase at market close. That trounced the S&P 500 index's 0.2% bump higher.

Higher rates prompt bullish revision

That analyst is Ken Hoexter of Bank of America Securities. That morning, Hoexter flipped the switch on the upgrade, moving it a notch higher to buy from his previous neutral. The prognosticator accompanied this with a significant price-target hike to $60 per share. Previously, he felt it was worth $49.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Image source: Getty Images.

According to reports, Hoexter's adjustments are due in no small part to rising product tanker rates. The analyst wrote that these are increasing despite the fact that we're not yet in the critical fall season. Such a dynamic bodes well for Scorpio's immediate future.

The Bank of America pundit feels that this will continue through the end of this year and will be due to a number of factors, including the apparent unwinding of production cuts by the ever-influential oil industry association -- the Organization of the Petroleum Exporting Countries (OPEC).

New earnings estimates

With these tailwinds about to blow, in Hoexter's view, he raised his profitability estimates for Scorpio's 2025 third quarter plus full-year 2025 and 2026. For the quarter, he's raised his per-share earnings forecast by a robust 39%. For the two years, he's hiked his projections by a respective 7% and 28%.

Should you invest $1,000 in Scorpio Tankers right now?

Before you buy stock in Scorpio Tankers, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Scorpio Tankers wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $670,781!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,023,752!*

Now, it’s worth noting Stock Advisor’s total average return is 1,052% — a market-crushing outperformance compared to 185% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of September 8, 2025

Bank of America is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.