Viking Holdings Is Uniquely Positioned For Growth: Analysts Begin Coverage After IPO

Zinger Key Points
  • Viking Holdings generates “superior returns and unit economics,” one analyst says.
  • The company is poised to gain “multi-year market share” in the $1.9 tn global vacation market, another analyst notes.

Viking Holdings Ltd VIK has been in focus especially after Jim Cramer said he was backing the IPO despite the premium price.

BofA Securities On Viking Holdings

Analyst Shaun Kelley initiated coverage with a Buy rating and price target of $35.

Viking Holdings has a majority share in the North America outbound river market and targets affluent travelers who are 55 years or older, Kelley said in the initiation note.

"Unlike cruise peers with a portfolio of brands for many demographics, Viking has a single brand with uniformity across its fleet," he stated.  

"VIK generates superior returns and unit economics and, in our view, is well-positioned in the industry given its growth profile, customer segment, and balance sheet," the analyst wrote. The company's average itinerary is booked 11 months ahead, "providing meaningful visibility," he further stated.

Check out other analyst stock ratings.

JPMorgan On Viking Holdings

Analyst Matthew Boss began coverage with an Overweight rating and price target of $34.

Viking Holdings appeared well positioned to gain "multi-year market share" in the expanding global vacation market valued at $1.9 trillion, Boss said. The company has a strong and scalable business, he added.

The analyst stated the company's target market is comprised of and caters to an "insulated target demographic of 55+ year olds," who are:

  • The fastest-growing population in the U.S.
  • Have the largest spending power
  • Relatively insulated during macroeconomic challenges
  • Focus and time to prioritize spending on experiences

"Importantly, we see Viking's educational, destination-first focus, and ‘One Brand’ marketing strategy driving sustainable customer loyalty and high guest repeat rates," he further wrote.

VIK Price Action: Shares of Viking Holdings had risen by 2.49% to $30.42 at the time of publication on Tuesday.

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Photo: Courtesy Viking

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Posted In: Analyst ColorLong IdeasInitiationTravelAnalyst RatingsMoversTrading IdeasBofA Securities. Shaun KelleyCruisesExpert IdeasJPMorganMatthew BossStories That Matter
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