UBS reiterates Buy on Viking Holdings stock amid river disruptions

UBS has reaffirmed its Buy rating and $121.00 price target on Viking Holdings (NYSE:VIK) stock, despite low river levels impacting current cruise bookings. The company's stock currently trades at $91.95, indicating a 32% upside potential from the analyst's target, with shares surging 49% over the past year. Viking Holdings is offering future cruise credits for impacted bookings, which will be discounted for 2027 and 2028 cruises.

The impact on third-quarter yields could see a reduction of 250 basis points if the current rate of affected sailings and cancellations persists for the entire quarter, reducing the company's year-over-year growth from 5.5% to 3.0%. For fiscal year 2026, the impact could be an 80 basis point reduction, lowering the growth estimate to 5.0% from 5.8%.

Despite 13 analysts revising their earnings downward, Viking Holdings exhibits strong fundamentals, with revenue growth of 20% over the past year and a PEG ratio of 0.46, suggesting an attractive valuation relative to growth. The company recently reported impressive Q2 2026 earnings, with adjusted EPS of $1.31, surpassing expectations, while revenue increased by 16.5% to $2.19 billion and adjusted EBITDA rose by 18.2% to $748 million.

Viking Holdings has sold 96% of its core capacity for 2026, with 53% booked for 2027. Management acknowledged that low water levels on European rivers might affect third-quarter results but did not impact Q2. Among analysts, UBS raised its price target to $121 from $100, maintaining a Buy rating due to Viking Holdings' growth profile and return on invested capital.

Stifel also kept a Buy rating but lowered its price target to $120 from $125, citing temporary concerns over low water levels. Mizuho adjusted its price target to $82 from $75, retaining an Underperform rating for the stock.