Scorpio Tankers' (STNG) recent deleveraging efforts and disciplined, returns-focused approach to renewal of its "high quality, modern fleet," offer "exposure to attractive multiyear fundamentals" Morgan Stanley said in a note to investors on Thursday as it initiated coverage of the Monaco-based shipping company.

Risks include continuing market volatility as Strait of Hormuz transit resumes, the note said.

The company boasts a modern, fuel-efficient fleet of 79 tankers with an average age of 10.2 years and a spot-market-focused strategy that lets it "capitalize on volatility in global tanker rates while maintaining strong utilization and operating efficiency," the note said.

The company offers "a differentiated value proposition" with more "limited risk than is typical in this sector," the note said.

The company's lack of debt is also an important differentiator within the tanker industry, protecting it from liquidity issues, the note said.

Morgan Stanley initiated coverage with an equal-weight rating and an $82 price target, the note said.