Opinions The Monthly Gems by Allan Tong
Viking HoldingsVIKTOP PICKSep 01, 2026
Stock price when the opinion was issued
As of Sep 02, 2026. Market Open.
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The best in this sector. Unlike peers, it didn't need to borrow a ton of money during Covid. Is up 230% since its IPO 2 years ago, but -17% the past month. All cruiselines fell the past year, given the higher price of oil from the US-Iran war. Also, there are worries over low water levels in some European rivers, like the Danube and Rhine after this hot summer. This could result in major cancellations. Q2 earnings were goo: revenue, EPS and EBITDA growth of 18.2%. They sold 96% of its capacity for 2026, while advance bookings are 6% are higher than last year, and already sold 53% of its 2027 capacity, 21% higher than a year ago. Then, the CEO mentioned the lower river levels in the conference call of Aug. 9, and in some cases Viking issued vouchers to some guests that will impact financials into 2028 when they are redeemed. Totally buy this correction, down 17.45% in the past month. Trades at only 26.5x PE, always commanding a premium valuation. Is growing earnings at 25% this year.
Carnival, Royal Caribbean and Norwegian are the biggest cruise lines in the world in that order, altogether taking 88% total market share. So, where does this leave Viking?With a 4.2% global share, but roughly 25% of the luxury market. In fact, Viking operates in a luxury niche in cruising, famous for its European river excursions. Ads show wealthy senior couples gazing at the Budapest skyline as their ship floats down the Danube. Last year, 102 ships generated $5.4 billion in revenue at a 95% occupancy rate, with nearly half of those passengers being repeat customers. These are mostly rich travellers 55 years and older who like Viking's bundled shore excursions, no-kids policy and no casinos. Customers aren't looking to party, but to chill and explore. As society grows older, this audience will grow, even though cruise lines are a competitive business.