Viking's Premium Valuation Backed By Strong Growth, Analyst Notes

Viking Holdings Ltd VIK shares slipped on Wednesday despite the cruise operator posting a strong second-quarter revenue jump and upbeat analyst commentary. 

The company reported an 18.5% year-over-year sales increase to $1.88 billion and reaffirmed its ability to sustain mid-single-digit pricing strength across its segments.

While Bank of America Securities reiterated a Buy rating with a $70 target, citing Viking’s premium positioning and superior returns, investors appeared cautious as shares traded nearly 2% lower in midday action.

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Didora noted that Viking’s premium positioning should help sustain pricing power, leading to only slight adjustments in 2025-2027 revenue and earnings forecasts.

Pricing trends were mixed. River segment pricing improved by 200bps to +6%, likely supported by its dominant market share and mix benefits, while Ocean segment pricing slipped to +4% from +5%, which Didora suggested may reflect rising competition from other cruise operators.

Concerns raised last quarter about 2026 pricing stability eased, as Viking maintained its +4% outlook while reinforcing expected mid-single-digit gains.

Didora added that Viking is positioned to expand 2025 EBITDA by over 25%, with 2026-2027 estimates growing in the mid-teens, well above the high-single to low-double-digit growth expected for other cruise lines.

He also pointed out that Viking’s return on invested capital and EBITDA per APCD are nearly twice the industry average. “We believe VIK’s growth and financial metrics justify a premium valuation to peers,” Didora noted.

Price Action: VIK shares are trading lower by 1.92% to $58.09 at last check Wednesday.

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