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Viking expands Nile fleet with new Viking Sobek shi

Published 10/10/2024, 08:12 AM
VIK
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CAIRO - Viking (NYSE: VIK) has expanded its presence on the Nile River with the introduction of the Viking Sobek, the latest addition to its fleet. The company announced the delivery of the new 82-guest river ship during a ceremony at the Massara shipyard in Cairo, Egypt, earlier this week. The Viking Sobek is designed to complement Viking's existing Egypt fleet, offering the popular 12-day Pharaohs & Pyramids itinerary.

The Viking Sobek mirrors the Scandinavian design of its sister ships, the Viking Osiris, Viking Aton, and Viking Hathor, and features 41 staterooms, a square bow, and an Aquavit Terrace. The ship's itinerary includes a three-night hotel stay in Cairo, visits to historical sites, and an eight-day cruise on the Nile.

Viking's relationship with Egypt extends beyond its fleet. The company offers guests experiences at Highclere Castle, known for "Downton Abbey," and provides privileged access to Egyptian collections in the UK, including the British Museum and the private museum of Sir John Soane.

The Viking Sobek joins the Viking Ra and the MS Antares in the company's Nile fleet. Viking plans to add four more ships by 2026, which will bring the total to 10 vessels on the Nile. This expansion comes as Viking continues to receive accolades, having been named the top river, ocean, and expedition cruise line by Condé Nast Traveler and featured in Forbes and TIME magazine.

Viking's growth in Egypt reflects the sustained interest in the region's rich history and cultural heritage among its guests. The company's itineraries offer a blend of iconic historical site visits and exclusive access to private collections and archives.

This expansion is based on a press release statement from Viking.

In other recent news, Viking Holdings Ltd has marked significant milestones and strategic moves. The company completed the inaugural journey of the Viking Yi Dun from Shanghai to Hong Kong, marking its re-entry into the Chinese market. A secondary public offering of 30 million ordinary shares held by existing shareholders was also announced, led by BofA Securities and J.P. Morgan.

Financially, Viking reported gross and net revenues of $718 million and $495 million, respectively, with operating losses recorded at $70 million. The firm has also expanded its offerings, announcing a series of six new Asia itineraries for 2025, the addition of Viking Hathor to its Nile River fleet, and the float out of Viking Vesta as part of its expansion strategy.

Analysts have shown confidence in the company's prospects. Wells Fargo maintained an Overweight rating on Viking Holdings, raising its price target to $39.00. Barclays initiated coverage with an Overweight rating, while BTIG and Stifel reaffirmed and maintained their Buy ratings, respectively. Other firms, including JPMorgan, Redburn-Atlantic, and UBS, also initiated coverage with positive ratings. These are the recent developments for Viking Holdings.

InvestingPro Insights

Viking's expansion on the Nile River with the introduction of the Viking Sobek aligns with the company's strong market position and recent financial performance. According to InvestingPro data, Viking has demonstrated impressive growth, with a 45.1% price total return over the past year and a 21.07% return in the last month alone. This positive momentum is reflected in the stock trading near its 52-week high, at 98.62% of that peak.

The company's revenue growth of 9.11% in the most recent quarter suggests that its expansion strategies, including the addition of new ships like the Viking Sobek, are translating into tangible financial results. With a market capitalization of $16.34 billion, Viking is a significant player in the Hotels, Restaurants & Leisure industry.

InvestingPro Tips highlight that Viking operates with a moderate level of debt, which could provide flexibility for future expansions. Additionally, analysts predict the company will be profitable this year, which could be a positive sign for investors considering the company's growth trajectory in the Egyptian market.

It's worth noting that Viking does not pay a dividend to shareholders, focusing instead on reinvesting in growth opportunities like the Nile fleet expansion. This strategy appears to be paying off, given the strong returns and market position.

For readers interested in a deeper dive into Viking's financials and prospects, InvestingPro offers 8 additional tips that could provide valuable insights for investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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