Analyst Andrew Didora of Bank of America Securities reiterated a Buy rating on Viking Holdings Ltd (VIK – Research Report), with a price target of $51.00.
Andrew Didora has given his Buy rating due to a combination of factors that highlight Viking Holdings Ltd’s strong financial performance and promising future prospects. The company reported better-than-expected earnings for the fourth quarter of 2024, with both EBITDA and EPS surpassing forecasts. Despite some softness in bookings observed in February, the steady pricing for 2025 bookings, which are already 88% filled, indicates a healthy demand and potential for yield growth.
Another significant factor contributing to the Buy rating is Viking Holdings Ltd’s robust balance sheet. With a net leverage ratio of 2.3x at the end of 2024, expected to improve to 1.4x by the end of 2025, the company stands out in the cruise industry. This financial strength positions Viking Holdings Ltd to maintain a valuation premium over its peers. Additionally, the company’s current trading levels and the potential for future updates on 2026 bookings further support the positive outlook.
Didora covers the Industrials sector, focusing on stocks such as Delta Air Lines, American Airlines, and Alaska Air. According to TipRanks, Didora has an average return of 0.7% and a 53.40% success rate on recommended stocks.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $53.00 price target.
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