Viking Holdings Ltd

Viking Holdings appears modestly undervalued on a discounted cash flow basis, with an estimated intrinsic value of about $107 per share, roughly 13.3% above the current price. The company's latest twelve-month free cash flow sits at about $1.31 billion, and the model assumes continued scaling of the business. However, the stock trades at a P/E of about 30.8x, above the hospitality industry average of roughly 23.8x and a peer group average near 20.8x, while its internal fair P/E estimate is about 33.6x. Viking Holdings scores just 2 of 6 on Simply Wall St's valuation checks, suggesting the stock is not a clear bargain. The company recently reported Q2 2026 results indicating firm demand and a growing fleet, with 96% of 2025 capacity and 55% of 2026 capacity already sold at higher rates.

Viking Holdings reported second quarter 2026 revenue of $2.2 billion, up 16.5% year over year, with adjusted EBITDA of $748 million, up 18.2%. Net income was $588 million, an improvement of $148 million year over year, and adjusted EPS was $1.31, up 33%. The company said 2026 advanced bookings reached $6.4 billion, 13% higher year over year with 96% of capacity booked, while 2027 advanced bookings were $4.7 billion, 21% higher with 53% of capacity booked. Management noted historically low water levels on European rivers have impacted more than 50% of River capacity passenger cruise days in the third quarter, with 10% to 12% of those cruises canceled, and the financial impact of vouchers issued to affected guests will extend into 2027 and 2028. The company maintained its goal of mid-single-digit yield growth for 2027 despite the disruptions.

Bernstein analyst Richard Clarke reaffirmed a Buy rating on Viking Holdings and set a price target of $120, implying a 16% upside from current levels. The firm sees travel demand increasing as oil prices decline following the Iran peace deal. Viking Holdings recently launched new European river cruise experiences, including Zeppelin airship excursions on select Rhine River cruises. Earlier, Truist Financial upgraded the stock from Hold to Buy and raised its price target from $75 to $102, citing positive sentiment on luxury, river, and expedition cruises.

Viking Holdings Ltd. announced the delivery of two new river ships, the Viking Annar and the Viking Fjolvar, constructed at the Meyer Neptun Werft shipyard in Germany. The Viking Annar will sail itineraries on the Rhine, Main, and Danube rivers and can host 190 passengers, while the Viking Fjolvar will serve routes on the Seine River with exclusive docking access in Paris and a capacity of 168 passengers. These additions are part of Viking's expansion plan, which includes 22 more river ships by 2028, nine ocean ships by 2031, and two expedition ships by 2031.

Norwegian Cruise Line reported first-quarter revenues of $2.33 billion, up 9.6% year on year but falling 1.2% short of analyst expectations, while earnings per share exceeded estimates. The company's full-year EBITDA guidance missed analyst forecasts, making for a mixed quarter. Among the 19 consumer discretionary travel and vacation providers tracked, aggregate revenues beat consensus by 1.6% but next-quarter revenue guidance came in 8.1% below expectations. Sabre posted the strongest results of the group with revenues of $760.3 million beating estimates by 4.4%, while Delta Air Lines exceeded revenue expectations with $15.85 billion but significantly missed on EPS and next-quarter guidance. Viking achieved the fastest revenue growth among peers at 17.5% year on year, and Travel + Leisure met revenue expectations at $961 million.