Many institutions such as Bank of America and Wells Fargo gave Viking Holdings a bullish rating and pointed out that targeting wealthy North American customers over 55 and providing luxury travel products made the company stand out from its peers.
The Zhitong Finance App learned that cruise operator Viking Holdings (VIK.US) was listed in the US earlier this month, and its stock price has increased by more than 23% since listing. Recently, many institutions such as Bank of America and Wells Fargo gave bullish ratings to the stock, and pointed out that targeting wealthy North American customers over 55 and providing luxury travel products made the company stand out from its peers. As of press release, Viking Holdings's US stock rose nearly 5% before the market on Tuesday.
Bank of America first gave Viking Holdings a “buy” rating, with a target price of $35. The bank believes that as the cruise operator targets wealthy North American customers over the age of 55, its niche business will grow. The bank emphasized that unlike other cruise operators with many brands, Viking Holdings has a unified brand to provide highly recognizable products to target markets.
Bank of America said Viking Holdings is well-positioned in the cruise industry due to its growth profile, customer segmentation and balance sheet. Looking ahead, Bank of America expects Viking Holdings to generate excellent returns. The bank stated that the target price for Viking Holdings is based on 12.0 times the expected profit before interest, tax, depreciation and amortization (EBITDA) in 2025, and a 20% to 25% premium over other listed cruise operators' stock premiums. The bank said the high premium is reasonable because Viking Holdings' luxury cruise business produces higher EbitDA per passenger, higher return on invested capital (ROIC), and better net leverage compared to other cruise operators.
Wells Fargo gave Viking Holdings an “extra holding” rating, with a target price of $35. The bank said the cruise operator stood out from its peers and the wider leisure industry because of its focus on catering to affluent North American baby boomer consumers.
Melius Research gave Viking Holdings a “buy” rating, with a target price of $37. The bank pointed out that Viking Holdings has an obsessive focus on travel products and has a unique position in the high-end luxury travel market.
Additionally, UBS, Stifel, and J.P. Morgan all gave Viking Holdings a “buy” rating. By contrast, Morgan Stanley was more cautious and gave Viking Holdings the first “holding” rating.