Oil tanker stocks are rising amid war. Jefferies likes three names
Tight oil supply due to the U.S.-Iran war and the closure of the Strait of Hormuz is a tail wind for tanker companies, according to Jefferies. The bank initiated coverage on three tanker companies on Friday and said the stocks are their top picks in the space: International Seaways , Scorpio Tankers and Navios Maritime Partners . Tanker stocks have surged in 2026. Jefferies analyst Stephanie Moore wrote that, on average, they’re up 50% year to date. And it’s not just the Middle East conflict fueling the rise: The companies stand to benefit from absorbing Venezuelan oil flows and a permanent shift of trade routes prompted by the longevity of the four-year long Russia-Ukraine conflict. Jefferies placed a buy rating on International Seaways and a $90 price target, which indicates a 17% gain from Thursday’s close. The company is already up 60% in 2026. INSW YTD mountain International Seaways year-to-date chart. What makes International Seaways unique is its exposure to both crude and refined products. “Most peers are concentrated on only one side of the market,” Moore wrote. “Seaways’ focus on debt repayment in 2022 and 2023 has translated into lower cash breakevens across its fleet (~$13,000/day), significant [free cash flow] generation, a strong liquidity position, and significant optionality for shareholder returns,” she added. Moore also placed a buy rating and $90 price target on Scorpio Tankers, which also implies a 17% gain from Thursday’s close. Scorpio’s stock has climbed more than 50% year to date. She noted the stock delivered a dividend of 45 cents per share in the fourth quarter, which she said is sustainable thanks to the company’s disciplined cash allocation. Lastly, Jefferies rates Navios Maritime Partners a buy with a $85 price target. That represents a 22% rise from Thursday’s close. Shares have gained 33% year to date. Navios’ 171-vessel fleet is the largest of the three companies, and includes containerships and dry bulk ships in addition to tankers. “This new diversified approach provides significant flexibility going forward, allowing management more options in tough times, including actively using its share repurchase authorization, while also giving it the opportunity to invest across various segments at different points in the cycles,” Moore wrote. NMM YTD mountain Navios Maritime Partners year-to-date chart.
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