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Investing.com - UBS raised its price target on Viking Holdings (NYSE:VIK) to $69.00 from $55.00 while maintaining a Buy rating following strong second-quarter earnings results. The cruise operator, currently trading at $59.22 and commanding a market capitalization of $26.23 billion, is currently trading near its 52-week high of $60.97. According to InvestingPro analysis, the stock appears to be fairly valued at current levels.
The cruise line operator delivered better-than-expected quarterly performance, which UBS attributed to the resilience of luxury consumers despite Viking’s significant capacity expansion. The company’s strong performance is reflected in its impressive 17.72% revenue growth over the last twelve months, with EBITDA reaching $1.5 billion.
Viking Holdings is experiencing 12% capacity growth in 2025 and 9% growth in 2026, with the company seeing larger increases in total demand, both in price and volume, compared to industry competitors.
UBS noted that Viking is achieving higher yield growth in 2025 than other cruise lines despite its much larger capacity increase, demonstrating the strength of its luxury consumer base.
The investment bank continues to value Viking using the upper end of a 15-17x price-to-earnings multiple on earnings per share, while reducing its discount period to 0.25 from the previous 0.75.
In other recent news, Viking Holdings reported stronger-than-expected earnings for the second quarter of 2025. The company achieved an adjusted earnings per share (EPS) of $0.99, surpassing the forecasted $0.79, marking a 25.32% surprise. This performance was supported by an 18.5% increase in total revenue, reaching $1.9 billion. Despite the positive earnings, Viking Holdings’ stock experienced a decline, which some analysts attribute to rising operational costs and forward-looking guidance concerns.
Goldman Sachs maintained a Neutral rating on Viking Holdings, with a price target of $60.00, emphasizing the company’s strong business fundamentals and anticipated double-digit revenue growth. Meanwhile, Melius Research reiterated a Buy rating with a $62.00 price target, noting that Viking shares have significantly outperformed the broader market this year. Truist Securities also maintained a Hold rating and a $55.00 price target following the company’s earnings report, highlighting that adjusted EBITDA exceeded consensus expectations. These recent developments reflect mixed sentiment among analysts regarding Viking Holdings’ future prospects.
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