Morgan Stanley analyst Stephen Grambling has maintained their bullish stance on VIK stock, giving a Buy rating today.
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Stephen Grambling has given his Buy rating due to a combination of factors including Viking Holdings Ltd’s strong booking trends and anticipated capacity growth. The company has demonstrated a robust booking curve with advanced bookings per passenger cruise day (PCD) for river and ocean cruises showing significant increases compared to previous seasons. This indicates a positive outlook for future revenue growth.
Additionally, the company’s gross margin has expanded, reflecting improved efficiency in commissions, which supports higher net yields. Viking Holdings Ltd’s strategic decision to add new ships to its Egypt itineraries is expected to enhance yields further, offering a premium over other routes. These factors, combined with the company’s potential for capital allocation due to best-in-class leverage, contribute to the optimistic price target of $66, up from $62, and reinforce the Buy recommendation.
According to TipRanks, Grambling is a 4-star analyst with an average return of 6.9% and a 63.69% success rate. Grambling covers the Consumer Cyclical sector, focusing on stocks such as Hyatt Hotels, Las Vegas Sands, and PENN Entertainment.
In another report released today, J.P. Morgan also maintained a Buy rating on the stock with a $72.00 price target.