Morgan Stanley has become the second major bank to upgrade shares in Scorpio Tankers following a slicing of its dividend.

Analyst Fotis Giannakoulis raised the New York-listed products tanker specialist to overweight, placing a revised target price of $5.55 per share on the company.

As TradeWinds reported yesterday Scorpio Tankers took down its quarterly dividend by over 90% to $0.01 per share in a move that will save $80m a year.