Viking Holdings Sees Strong Early Bookings For 2024 And 2025, Analysts Optimistic About Pricing Power And Market Position

Travel company Viking Holdings Ltd VIK reported first-quarter FY24 earnings yesterday. The following are the reactions of different analysts to the company’s earnings.

BofA Securities – Reiterates Buy, price target of $35.00

Analyst Andrew G. Didora said VIK reported solid 1Q24 results with EBITDA of $(4.4) million, beating the analyst’s $(11.9) million estimate.

VIK is now 91% booked for 2024 at 9% higher pricing than the 2023 season at the same point in time and 39% booked for 2025 at 12% higher pricing than the 2024 season at the same point in time, noted the analyst.

The analyst views this trend positively as bookings continue at strong pricing.

The analyst notes investors will be focused on any changes to VIK’s bookings curve, SG&A leverage, commentary on liquidity targets, and views around potential uses of excess cash in the coming years.

Stifel – Reiterates Buy, price target of $37.00

Analyst Steven M. Wieczynski notes that the company has been more transparent than its peers with its forward booking data, which reflects meaningful y/y growth in price and volume through 2025.

VIK has superior visibility into future revenues compared to large cruise peers given its elongated booking window and relatively early receipt of final deposits, said the analyst.

The analyst reminded investors that the first quarter is not overly relevant to full-year performance due to seasonality in the river cruise business, which primarily operates from April to October. 

As a result of this dynamic, the analyst expects investors will be most focused on forward booking trends coming out of the 1Q24 release coupled with management forward commentary.

J.P. Morgan – Reiterates Overweight, price target of $34.00

Analyst Matthew R. Boss sees a differentiated offering relative to its cruise peers with Viking’s educational, destination-first focus, and “One Brand” marketing strategy driving strong customer loyalty and high guest repeat rates.

The analyst said VIK is well positioned to gain market share within the expanding $1.9 trillion global vacation market driven by more insulated target demographic of 55+ year olds,  destination-focused business model and scalable business model with strong foundation.

Price Action: VIK shares are trading higher by 3.20% at $30.66 at the last check Thursday.

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