UPDATE: Dahlman Rose Raises PT on Scorpio Tankers on Clearer Growth Outlook

In a report published Wednesday, Dahlman Rose reiterated its Buy rating on Scorpio Tankers (NYSE: STNG), and raised its price target to $11.00.

Dahlman Rose noted, “The $267MM credit facility announced on February 25 affords full visibility into the financing of the company's 20 ship newbuild program. The facility can be used to finance up to 60% of the purchase price of new vessels, with STNG currently holding $334MM additional liquidity (including $272MM cash). Management stated that it views 18 of the 20 newbuilds as ‘definite' with the new financing, and that it is close to securing additional financing for the remaining two, while implying that a second eco-friendly newbuilding program in currently being evaluated.”

Scorpio Tankers closed on Tuesday at $8.49.