LOS ANGELES - Viking (NYSE: VIK), the ocean and river cruise line, has announced the float out of its latest ocean ship, the Viking Vesta, a significant step in the vessel's construction.
The ceremony, which marks the first time the ship has been in water, took place at Fincantieri's shipyard in Ancona on July 4. The Viking Vesta, characterized as a small ship with a gross tonnage of 54,300 tons and 499 staterooms for 998 guests, is on track to set sail on its maiden voyage in July 2025, touring the Mediterranean and Northern Europe.
Torstein Hagen, Chairman and CEO of Viking, expressed enthusiasm for the milestone, noting the brand's ongoing partnership with Fincantieri and the anticipation for the Viking Vesta’s inaugural season next summer. Following the Viking Vesta, its identical sister ship, the Viking Vela, is expected to launch in the fall of 2025.
The float out event is a traditional maritime practice that signifies a ship's transition into the final phase of construction. After the ceremony, the Viking Vesta will undergo further outfitting and interior finishing before her official debut.
Viking's dedication to "The Thinking Person" has garnered the cruise line recognition, including top ratings for oceans, rivers, and expeditions by Condé Nast Traveler in the 2023 Readers’ Choice Awards.
The Viking Vesta’s entry into Viking's fleet is part of the company's expansion since its founding in 1997. Viking is known for providing destination-focused journeys designed for travelers with interests in science, history, culture, and cuisine. The company has received over 450 awards, reflecting its commitment to quality and guest satisfaction.
This report is based on a press release statement and contains no endorsements of claims. Viking's stock information can be tracked on the New York Stock Exchange under the ticker VIK.
In other recent news, Viking Holdings has been making waves with its financial performance and promising research developments. The luxury cruise operator reported gross and net revenues of $718 million and $495 million respectively, surpassing both Stifel's and consensus estimates. It also recorded operating losses at $70 million, a figure significantly better than anticipated.
Barclays initiated coverage on Viking Holdings, highlighting its unique position in the cruise industry and its potential for above-industry revenue growth. This was attributed to Viking's significant capacity growth and yield growth that surpasses industry averages. Similarly, BTIG reaffirmed its Buy rating on Viking Holdings, reflecting confidence in the company's development of treatments for obesity.
Stifel maintained its Buy rating and a $37.00 price target for Viking Holdings, recognizing its strong financial performance. Wells Fargo, JPMorgan, Redburn-Atlantic, and UBS initiated coverage with ratings ranging from Overweight to Buy, citing factors such as Viking's unique luxury strategy and robust financial health. These are recent developments providing insights into Viking Holdings' financial health and market position.
InvestingPro Insights
As Viking (NYSE: VIK) prepares for the maiden voyage of its new ocean ship, the Viking Vesta, the company's financial health and market performance provide valuable context for investors. Viking is recognized as a prominent player in the Hotels, Restaurants & Leisure industry, which is reflected in its market capitalization of 15.06 billion USD. The company's dedication to expanding its fleet and offering enriching experiences to "The Thinking Person" is evident in its strong return over the last three months, with a price total return of 30.84%.
While Viking does not currently pay a dividend to shareholders, analysts are optimistic about the company's future profitability, predicting that Viking will turn profitable within the year. This is a notable turnaround considering the company was not profitable over the last twelve months as of Q1 2024. The optimism is further supported by Viking's revenue growth, which was 14.18% in Q1 2024, showcasing the company's ability to increase its earnings. Additionally, Viking operates with a moderate level of debt, which suggests a balanced approach to financing its growth.
For investors looking to delve deeper into Viking's financials and future prospects, there are additional InvestingPro Tips available, providing a comprehensive analysis of the company's performance and potential. With the use of coupon code PRONEWS24, investors can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking access to a total of 9 insightful tips on Viking.
The company's stock is currently trading near its 52-week high, indicating strong market confidence, which could be a positive sign for potential investors. With an upcoming earnings date on August 28, 2024, stakeholders will be keenly awaiting further updates on the company's financial health and strategic initiatives. The fair value of Viking's stock, as assessed by analysts, stands at 36 USD, while the InvestingPro Fair Value is slightly lower at 35.16 USD, offering a grounded perspective for investment decisions.
As Viking continues to innovate and expand its offerings with new ships like the Viking Vesta, keeping an eye on these financial metrics and insights can help investors navigate the investment landscape with more confidence.
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