GLNG - Scorpio Tankers surges as Bank of America upgrades on rising dayrates

Scorpio Tankers (STNG +3.5%) skies to a five-month high after Bank of America upgrades shares to Buy from Neutral with a $23 price target, raised from $15.50, highlighting the rapid product tanker market rate improvement as capacity continues to tighten and global product inventory levels that appear to have reached trough levels. MR Eco dayrates have reached $18,700 from $14K/day during the week of February 11, and LR2 Eco dayrates have doubled to $13,600 from $6,800/day over the same period, according to Clarksons data. The world's largest oil tanker carrier also has moved past near-term liquidity concerns following its recent vessel sale and is "prepared for market rate inflection on refiner product demand," BofA's Ken Hoexster writes. Scorpio boasts one of the most modern fleets, sufficient size and scale, management expertise and commercial pools benefits, Hoexster says. BofA also bumps Golar LNG (GLNG -1.9%) to Neutral from Underperform with a $19.50 PT,

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Scorpio Tankers surges as Bank of America upgrades on rising dayrates