Loop initiates cruise lines with Viking only Buy on growth prospects

Loop Capital analyst Laura Champine initiated coverage of Viking Holdings (VIK) with a Buy rating and $55 price target The firm says that while it is favorably disposed to the entire cruise industry, it thinks a demand recovery and balance sheet improvement is already in the stocks of legacy cruise lines. Viking is relatively under-levered and has better growth prospects as it is the smallest public cruise line and operates “significant river-based operations in addition to its much more nascent ocean ships,” the analyst tells investors in a research note. Loop also sees the company’s initial public offering as a signal that the line is more likely to focus on profitability, and it believes the company “has several levers to pull on that front.”