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Investing.com - Morgan Stanley (NYSE:MS) has reiterated an Overweight rating and $62.00 price target on Viking Holdings (NYSE:VIK), currently trading at $60.20 with a market capitalization of $26.9 billion, following the company’s quarterly earnings report. According to InvestingPro data, analyst targets for the stock range from $46 to $82, with a consensus recommendation leaning towards Buy.
The cruise operator delivered another quarterly earnings beat and maintained stable forward pricing, according to Morgan Stanley’s research note. The company has shown strong momentum with revenue growth of nearly 15% in the last twelve months and a healthy gross profit margin of 43%. The firm highlighted management’s previous guidance that pricing could evolve to "mid-single digit increase along with capacity increases."
Viking Holdings’ capacity growth for 2026 is concentrated in the second half of the year, which Morgan Stanley believes could lead to improved pricing into the latter part of 2025. The firm noted that gross margins expanded in the first half of the year, consistent with historical patterns.
Morgan Stanley projects that Viking’s capacity growth of over 9% during the next few years could drive consistent high-teens EBITDA growth and more than 30% EPS growth. The company currently trades at 17.9x 2026 earnings estimates, in line with Royal Caribbean (NYSE:RCL) despite Viking’s higher capacity growth and lower leverage.
The firm also pointed to Viking’s relatively low debt ratio of 2.1x net debt to EBITDA, which is below all cruise industry peers, potentially enabling further capital return to shareholders.
In other recent news, Viking Holdings reported strong financial results for the second quarter of 2025, surpassing analyst expectations. The company achieved adjusted earnings per share of $0.99, significantly higher than the consensus estimate of $0.79. Revenue for the quarter reached $1.88 billion, marking an 18.5% increase compared to the same period last year. Additionally, Viking Holdings reported an adjusted EBITDA of $633 million, outperforming estimates from both Goldman Sachs and Visible Alpha Consensus Data. Goldman Sachs has maintained its Neutral rating on the company’s stock, with a price target set at $60.00. These developments highlight Viking Holdings’ robust financial performance in the recent quarter.
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