VIK

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Cruise Industry Outlook: Exane BNP Paribas predicts steady growth in cruise net yields for 2025 and 2026, driven by strong demand, new revenue sources like private islands, and digital innovations that enhance customer experience and onboard spending.

Stock Ratings: The firm has initiated coverage with Buy ratings on Carnival, Royal Caribbean, and Viking Holdings, while Norwegian Cruise Line is rated a Hold due to lacking growth drivers; analysts see significant upside potential for NCLH stock.

New Ship Delivery: Viking has announced the delivery of its latest Longship, the Viking Nerthus, which will operate on the Seine River and offer two itineraries: "Paris & the Heart of Normandy" and "Christmastime in Paris & Normandy."

Fleet Expansion Plans: With the addition of the Viking Nerthus, Viking plans to expand its fleet further, expecting to take delivery of 25 more river ships by 2028 and nine ocean ships by 2030, aiming for a total of 109 river ships and 21 ocean and expedition ships.

Analyst Ratings: Patrick Scholes from Truist Financial maintains a Hold rating on Viking Holdings Ltd with a price target of $50, while Barclays also issued a Hold rating and Loop Capital Markets maintained a Buy rating.

Financial Performance: Viking Holdings reported a quarterly revenue of $1.35 billion and a net profit of $115.81 million for the quarter ending December 31, showing significant improvement compared to the previous year's revenue of $1.12 billion and a net loss.

Investment Advice from Jim Cramer: Jim Cramer suggests that investors look for bargains in sectors hit hard by market losses, particularly focusing on recent IPOs like Cava, Reddit, and Viking Holdings, which he believes have long-term potential despite current stock price declines.

Market Outlook for Specific Companies: Cramer expresses optimism about the future of Cava, Reddit, and Viking, noting their strong business fundamentals and potential for recovery as the market stabilizes, especially highlighting Viking's solid bookings and performance.

Analyst Update on Viking Holdings: Truist analyst Patrick Scholes has raised the price target for Viking Holdings (VIK) to $50 while maintaining a Hold rating, noting a slowdown in year-over-year booking pace despite stable pricing growth for new bookings.

Industry Insights: Conversations with travel industry executives and analysis of big data indicate a deceleration in cruise bookings compared to previous months, although pricing trends remain strong.

Analyst Rating and Price Forecast: Goldman Sachs analyst Lizzie Dove maintained a Neutral rating on Viking Holdings Ltd (VIK) while increasing the price forecast from $49.00 to $51.00, noting strong booking visibility with 88% of 2025 capacity sold despite a slight slowdown in February bookings.

Financial Performance and Market Position: VIK's revenue is primarily driven by ticket sales, reducing reliance on onboard spending; the company is expected to manage costs effectively while navigating uncertain macro conditions, with anticipated growth in both volume and pricing for 2026.

Analyst Rating Update: Barclays analyst Brandt Montour has reduced the price target for Viking Holdings (VIK) from $49 to $46 while maintaining an Equal Weight rating, citing solid Q4 results but market expectations for more growth.

Company Performance Highlights: Viking Holdings reported a Q4 EPS of 45 cents, surpassing the consensus estimate of 36 cents, and indicated a 12% increase in core products and operating capacity for 2025.

Analyst Rating and Price Target: Barclays analyst Brandt Montour has maintained a Hold rating on Viking Holdings Ltd with a price target of $46.00, while the current consensus is a Moderate Buy with an average price target of $52.86.

Analyst Performance: Montour, a 4-star analyst with a 6.7% average return and a 46.30% success rate, focuses on the Consumer Cyclical sector, covering companies like Caesars Entertainment and MGM Resorts.

Travel Industry Struggles: The travel sector is facing significant challenges, with major airlines like Delta and American Airlines lowering revenue forecasts, leading to declines in travel-focused ETFs such as the U.S. Global Jets ETF, ETFMG Travel Tech ETF, and Invesco Dynamic Leisure and Entertainment ETF.

Market Pressures and Geopolitical Factors: Broader market pressures, including a drop in the British FTSE 100 and geopolitical uncertainties related to U.S. tariff policies, are contributing to the downturn in travel stocks, affecting consumer sentiment and spending in the industry.

Market Performance: Wall Street continued its decline, with the Nasdaq 100 and S&P 500 hitting lows due to trade war fears and disappointing corporate earnings, while the Dow Jones saw the largest drop among major indices.

Economic Indicators: Despite market turmoil, U.S. job openings unexpectedly rose, indicating labor market strength, while commodities like gold and silver gained traction as investors sought inflation hedges amidst a weakening dollar.

Earnings Report: Viking Holdings Ltd reported fourth-quarter adjusted earnings per share of 45 cents, exceeding expectations, with quarterly sales of $1.35 billion reflecting a 20.5% year-over-year increase driven by higher Capacity Passenger Cruise Days (PCDs) and revenue per PCD.

Future Outlook: The company anticipates a 12% increase in capacity for its Core Products in 2025, with 88% of the season already booked and advance bookings growing by 26%, despite VIK shares trading lower by 6.27% to $40.06.

Financial Performance: Viking Holdings Ltd reported a total revenue of $5.33 billion for 2024, marking a 13.2% increase from the previous year, with significant growth in adjusted EBITDA and net income compared to 2023. The company also achieved a 7.4% rise in net yield and maintained a strong occupancy rate of 92.1% in Q4 2024.

Future Outlook: Looking ahead to 2025, Viking plans to expand its capacity by 12% with the addition of 11 new ships, and has already secured 88% of its passenger cruise days for the upcoming season, indicating strong demand and advanced bookings that are 26% higher than the previous year at this time.

Viking's Financial Performance: Viking reported Q4 revenue of $1.34 billion, with significant year-over-year increases in Net Yields (7.4%) and Adjusted Gross Margin (14.0%), leading to a 23.7% growth in Adjusted EBITDA for 2024.

Future Growth Plans: The company plans to increase its capacity for Core Products by 12% in 2025 with the addition of 11 new ships, and reports that 88% of these products are already booked for the upcoming season.

Job Market Insights: The JOLTS report for January is set to be released, with expectations of 7.67 million job openings indicating strong demand for workers.

Earnings Reports and Optimism Index: The NFIB Small Business Optimism Index is forecasted to drop to 101, while earnings reports from Viking Holdings, Dick's Sporting Goods, and Kohl's are anticipated, with Dick's expecting positive same-store sales.

Daily Update: The CNBC Investing Club with Jim Cramer provides an actionable afternoon update called the Homestretch every weekday.

Trading Insights: This update is designed to inform investors just before the last hour of trading on Wall Street.

Earnings Release: VIKING HOLDINGS ($VIK) is set to announce its quarterly earnings on March 11th, with analysts predicting revenue of approximately $1.35 billion and earnings of $0.34 per share.

Investor Activity: In the latest quarter, 140 institutional investors increased their holdings in VIKING HOLDINGS, while 101 reduced their positions, indicating significant interest in the stock.

Conference Call Announcement: Viking Holdings Ltd will hold a conference call on March 11, 2025, at 8:00 a.m. Eastern Time to discuss its fourth quarter and full year 2024 financial results, with a webcast available for 30 days post-call.

Company Overview: Founded in 1997, Viking specializes in destination-focused journeys and has received numerous awards, including top ratings from Condé Nast Traveler and Travel + Leisure for rivers, oceans, and expeditions.

Cruise Industry Tax Concerns: Following Commerce Secretary Howard Lutnick's comments on the tax status of cruise lines, stocks in the sector fell but are now rebounding as a policy shift regarding "flags of convenience" seems unlikely. The Trump Administration has previously threatened changes to the favorable tax treatment of U.S.-domiciled cruise operators.

Market Reaction and Analyst Insights: Analysts from Mizuho and Wells Fargo believe the market's reaction to Lutnick's remarks was exaggerated, viewing the subsequent sell-off as a potential buying opportunity. They estimate that any new taxes would have a minimal impact on major cruise companies' profits, suggesting that the industry's close ties to Florida may protect it from significant changes.

Cruise Industry Tax Controversy: U.S. Commerce Secretary Howard Lutnick's comments on cruise lines avoiding taxes by registering ships in foreign countries led to a significant drop in shares of major cruise companies, with Royal Caribbean experiencing an 11% decline in one day.

Market Overreaction and Defense: Analysts believe the stock market's reaction was excessive, citing that similar tax threats have not resulted in actual changes in the past; the Cruise Lines International Association defended the industry, highlighting their substantial contributions to U.S. taxes and the economy.