Stifel maintains Viking Holdings stock Buy rating, $52 target

On Tuesday, Stifel analysts maintained a Buy rating on Viking Holdings (NYSE:VIK) with a steady price target of $52.00, following the company’s fourth-quarter earnings report for 2024. According to InvestingPro data, Viking Holdings, a prominent player in the Hotels, Restaurants & Leisure industry with an $18.45 billion market cap, has seen its stock decline about 8% over the past week, though it maintains a strong 35% gain over the past six months. Viking Holdings reported gross and net revenues of $1.35 billion and $869 million respectively, which were slightly below Stifel’s expectations but aligned with the general market consensus. The cruise operator’s operating income for the quarter was $231 million, which was marginally below both Stifel’s projection of $242 million and the consensus estimate of $232 million. InvestingPro analysis shows the company has achieved a robust 14.14% revenue growth over the last twelve months, though it operates with moderate debt levels and faces some short-term liquidity challenges.

Adjusted EBITDA for Viking Holdings reached $306 million, surpassing Stifel’s forecast of $300 million and the market consensus of $297 million. The company experienced a year-over-year increase of approximately 12% in total cruise operating expenses, including vessel operations, fuel, and selling, general and administrative expenses (SG&A). Fuel expenses for the quarter amounted to $44 million, and net interest expenses were reported at $67 million.

The company’s earnings per share (EPS) on a GAAP basis were $0.24, with an adjusted EPS of $0.45. These figures compare favorably to Stifel’s estimate and the consensus estimate, which both anticipated an EPS of $0.36. Viking Holdings reported an occupancy rate of 92% for the quarter, which represents a slight increase from the previous year, and net yields were up 7% year-over-year at $507, supported by an 11% increase in capacity.

Viking Holdings concluded the fourth quarter of 2024 with net leverage remaining stable at 2.4 times, consistent with the third quarter of 2024. The company also reported deferred revenues of $4.1 billion. Looking ahead, management is expecting a capacity growth of around 12% for the fiscal year 2025. InvestingPro analysts have set price targets ranging from $45 to $58, with additional insights and 8 more ProTips available for subscribers. The company maintains a "GOOD" overall financial health score, and analysts project a return to profitability this year, making it an interesting watch for investors seeking detailed analysis through InvestingPro’s comprehensive research reports.

In other recent news, Viking Holdings Ltd reported a strong fourth quarter for 2024, surpassing earnings expectations with an EPS of $0.45, compared to the forecasted $0.33. The company achieved a 20.5% year-over-year increase in revenue for Q4 2024, reaching $1.4 billion, and net income of $104 million, marking a significant turnaround from a loss in the same quarter of the previous year. Viking Holdings also plans a 12% capacity growth for 2025, with new ships expected to be delivered, supported by a strong cash reserve of $2.5 billion for potential mergers and acquisitions. Moody’s recently upgraded Viking Cruises Limited’s corporate rating to BA3 from B1, aligning with S&P’s rating, reflecting the company’s improved credit metrics. Viking Holdings has already achieved 88% bookings for 2025, with advanced bookings 26% higher than the previous year. The company maintains a leading market share in the river and ocean cruise segments, with plans to further expand its fleet. Viking Holdings continues to focus on its strategic growth and financial performance, supported by strong demand and operational efficiency.

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