Core Viewpoint - Goldman Sachs analyst Lizzie Dove initiated coverage on Viking Holdings Ltd with a Neutral rating and a price forecast of $49, highlighting the company's strong business model and revenue growth potential due to demographic trends and category expansion [1] Group 1: Business Model and Demographics - Viking Holdings has a high exposure to a growing demographic that books ahead at higher prices, which enhances its revenue growth [1] - The core demographic for Viking Holdings consists mainly of affluent US travelers aged 55 and older, representing about 30% of the population but over 70% of the wealth [3] Group 2: Market Position and Competition - The stock has risen 73% since its IPO in May 2024, leading the analyst to seek a better entry point due to its valuation premium compared to Royal Caribbean Cruises Ltd [2] - Viking Holdings has less new-to-cruise customers compared to its peers, which have seen double-digit growth in this segment, particularly among millennials and younger travelers [4] Group 3: Booking Visibility and Financial Strategy - Viking Holdings has high booking visibility, with 70% of bookings for 2025 already secured, indicating less potential for near-term estimate revisions and share repurchases [2] - Despite a strong pipeline of potential cruisers, the company may miss out on the new-to-cruise growth that has benefited the broader industry [4]
Viking Holdings' Premium Valuation Warrants A More Favorable Entry Point: Analyst