Stock market today: Stocks fall as investors rotate out of tech into Jackson Hole
Investing.com - Viking Holdings (NYSE:VIK) stock has declined 3% despite Melius Research maintaining its Buy rating and $62.00 price target on the cruise operator. According to InvestingPro data, the company maintains a "GREAT" financial health score, though current trading levels suggest the stock is modestly overvalued.
Viking shares have significantly outperformed the broader market this year, gaining 32% compared to the S&P 500’s 10% increase, according to Melius. The stock has recently pulled back modestly from all-time highs as some investors expected improved pricing outlook for 2026.
Melius notes that core pricing for Viking’s River cruises is accelerating while Ocean cruises maintain healthy pricing. The "other" category has turned negative, which the firm describes as "historically fickle." The company’s strong pricing power is reflected in its robust revenue growth of 14.86% and healthy EBITDA of $1.38 billion in the last twelve months.
The research firm’s view on Viking remains largely unchanged, highlighting the company’s proven ability to drive top-line growth through both demand and pricing at a "methodical rate." Melius cites Viking’s strong brand, consistent margin improvement, and excess cash generation as factors supporting further upside potential.
The firm remains optimistic about Viking’s execution capabilities, especially as the cruise market’s total addressable market (TAM) continues to expand.
In other recent news, Viking Holdings reported robust second-quarter earnings for 2025, with adjusted earnings per share (EPS) of $0.99, surpassing the forecasted $0.79. This represents a 25.32% surprise, highlighting the company’s strong financial performance. Total (EPA:TTEF) revenue rose by 18.5% to $1.9 billion, further indicating positive growth. Additionally, Viking Holdings achieved an adjusted EBITDA of $633 million, exceeding consensus expectations of $593 million by 7%. Despite these positive earnings results, market sentiment remains cautious, possibly due to rising operational costs and forward-looking guidance. Truist Securities maintained its Hold rating on Viking Holdings, with a price target of $55.00, following the earnings report. These developments reflect the company’s recent financial activities and analyst perspectives.
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