Stifel cuts Viking Holdings stock price target to $50

Published 21/05/2025, 13:54
Stifel cuts Viking Holdings stock price target to $50

On Wednesday, Stifel analysts adjusted their outlook on Viking Holdings (NYSE:VIK), reducing the company’s price target from $52.00 to $50.00, while still maintaining a Buy rating on the stock. Currently trading at $44.73, Viking Holdings has demonstrated remarkable strength with a 52.4% return over the past year, according to InvestingPro data. Stifel’s commentary highlighted that early 2026 pricing for Viking Holdings is trending lower than what investors had anticipated. Given the uncertain economic climate, this development is not expected to be received well by the market, particularly considering the stock’s current high P/E ratio of 68x.

The analysts noted that Viking Holdings is optimistic about raising prices throughout the remaining year to achieve mid-single digit range yields for 2026. The company’s strong revenue growth of 14.86% in the last twelve months supports this ambition. However, Stifel expressed a cautious stance, suggesting that it’s too soon to determine if Viking Holdings will succeed in this endeavor given the current lack of clarity around pricing and demand for 2026. InvestingPro analysis indicates the stock is slightly overvalued at current levels, with 8 additional exclusive insights available to subscribers.

Despite the lowered price target, Stifel remains positive about Viking Holdings’ prospects, aligned with the company’s GREAT financial health score of 3.24 from InvestingPro. The firm’s current booked position for 2026, which is approximately 37% of inventory sold, surpasses Stifel’s projections. Moreover, Stifel pointed out that Viking Holdings does not appear to be relying heavily on promotions to boost demand, which is a positive sign given its substantial market capitalization of $20.85 billion.

The analysts also emphasized Viking Holdings’ strong position due to its lengthy booking window and substantial customer database. These factors, according to Stifel, should enable Viking Holdings to regain bookings more rapidly even if there is a slowdown in bookings in the future.

In conclusion, while acknowledging the challenges posed by the current pricing trends for 2026, Stifel suggests that Viking Holdings is well-equipped to navigate through potential market fluctuations and maintain a strong market position.

In other recent news, Viking Holdings reported its first-quarter earnings, revealing a narrower-than-expected loss. The company posted a loss of $0.24 per share, outperforming analysts’ consensus estimate of a $0.28 per share loss. Revenue for the quarter was reported at $897.1 million, although no specific analyst estimates for revenue were available for comparison. Despite the loss, these results indicate an improvement from the previous year. Additionally, JPMorgan updated its outlook on Viking Holdings, raising the price target from $58.00 to $61.00 while maintaining an Overweight rating. Analyst Matthew Boss from JPMorgan highlighted Viking’s unique position in the cruise industry, emphasizing its strong customer loyalty and guest repeat rates. Viking’s strategic focus on the 55+ demographic, which controls a significant portion of US wealth, was noted as a potential driver for market share gains. The company’s scalable business model and significant market share in both the river cruise and ocean luxury markets were also cited as key growth factors.

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