Stifel reiterates Buy rating on Viking Holdings stock with $75 price target

Published 19/08/2025, 14:06
Stifel reiterates Buy rating on Viking Holdings stock with $75 price target

Investing.com - Stifel has reiterated its Buy rating on Viking Holdings (NYSE:VIK) with a price target of $75.00, maintaining confidence in the cruise operator despite potential yield deceleration concerns. The stock, currently trading near its 52-week high of $60.97, has demonstrated strong momentum with a 70% return over the past year. According to InvestingPro data, three analysts have recently revised their earnings estimates upward for the upcoming period.

The firm notes that Viking has essentially booked all of its 2025 revenues with year-over-year pricing growth around 7%, but expects yields to decelerate in the second half of 2025. For 2026, Viking has slightly more than half of its revenues booked at a 4% year-over-year pricing increase, which aligns with the company’s long-term growth algorithm. The company’s recent performance shows promising signs, with revenue growth of nearly 15% in the last twelve months and a healthy gross profit margin of 43%.

Stifel acknowledges that Viking currently holds the richest valuation among large cruise line operators, and suggests recent stock movements could represent profit-taking by long-term holders who have seen their investments more than double since the company’s 2024 IPO.

The firm highlights Viking’s "best-in-class" balance sheet with leverage around 2.0x, powerful brand recognition, and dominant position in the river cruise market. These factors, coupled with significant capacity growth in the orderbook, position the company to accelerate free cash flow growth over the next few years.

Stifel’s $75 price target represents 16 times the firm’s Calendar Year 2027 EBITDA estimate for Viking Holdings.

In other recent news, Viking Holdings reported impressive second-quarter earnings, surpassing analyst expectations. The company achieved adjusted earnings per share of $0.99, outperforming the consensus estimate of $0.79. Revenue for the quarter rose to $1.88 billion, marking an 18.5% increase compared to the same period last year. In addition, Viking Holdings posted an adjusted EBITDA of $633 million, exceeding both Goldman Sachs’ estimate of $593 million and the Visible Alpha Consensus Data of $590 million. Following these results, Morgan Stanley (NYSE:MS) reiterated its Overweight rating with a price target of $62.00, citing the company’s earnings beat and stable forward pricing. Goldman Sachs maintained a Neutral rating, setting a price target of $60.00. These developments indicate strong financial performance and positive analyst sentiment towards Viking Holdings.

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