- Scorpio Tankers (STNG +9.8%) surges as Deutsche Bank enthusiastically maintains its Buy rating on the shares, seeing a "major opportunity" for STNG investors after the stock has dropped 38% YTD.
- Market participants are "rightfully concerned" about the expected step-function increase in cash calls related to debt repayments, Deutsche Bank analyst Amit Mehrota says, and the negative implication is that STNG would need a highly dilutive equity offering to meet increasing cash flows.
- But Mehrota says his analysis implies "significant dislocation" if management is able to extend its runway, which he believes is "highly probable."