Goldman Sachs believes that Viking has a leg up over its competitors in the cruise business. The bank upgraded the cruise stock to buy from neutral. Analyst Lizzie Dove also raised her 12-month price target for the stock to $78 from $66, citing higher estimates and multiple upward revisions. The new forecast signals 17% upside from Monday’s close. Shares of Viking have surged 51% this year. The analyst wrote that while the stock’s valuation could look expensive, it is “more than justified” when accounting for growth and factoring in a significantly higher return on invested capital. VIK YTD mountain VIK YTD chart “In a world where there has been uncertainty around cruise and the consumer more generally, the benefits of VIK’s differentiated geographic exposure and higher-income demographic have countered the choppier broader cruise trend and shone through in recent months, with a nice acceleration in the 2026 pricing curve,” she wrote. Dove pointed to Viking’s customer demographic of affluent travelers from the U.S. age 55 and over, which is projected to grow by 31% through 2054. Viking’s clearly identifiable brand has also helped drive very strong customer loyalty, with the percentage of repeat guests rising to 53% in 2024 from 27% in 2015. Viking is also much more prepared to hedge against broader cruise noise due to its lack of Caribbean exposure, Dove wrote. The company is continuing to diversify into new and higher-priced regions, such as the Nile. The analyst also sees cost growth coming down for Viking, despite consensus overestimating cost growth after some concerns last quarter. Additionally, she applauded the company’s strong financials. “With VIK’s strong balance sheet and large cash reserve turning net debt negative on our numbers by 2028, a potential future buyback program could be meaningful,” she wrote. “We do not take a view on when these buybacks may commence (nor the mix between dividends and buybacks), but note this strategy could unlock material value for the stock.” Viking shares rose more than 2% in light volume trading following the upgrade.
