Goldman Sachs Just Upgraded Viking Holdings Stock to a Buy and Cut Norwegian Cruise Line. Here's Which Stock Could Soar In 2026 and Beyond.

Core Insights - Viking Holdings has significantly outperformed since its IPO, nearly tripling in value and defying typical IPO stock concerns [7] - Cruise stocks, particularly Viking, have shown resilience amid economic anxiety, while other consumer-facing sectors face sales challenges [2] Company Performance - Viking Holdings reported a 19.1% increase in revenue to $2 billion in its third-quarter earnings, with a fleet expansion to 100 ships [9] - The company achieved a net yield growth of 7.1% in the quarter, with 70% of its 2026 capacity already sold [9] - Viking's operating margin reached 30% during the strong third quarter, indicating robust profitability [9] Market Position - Goldman Sachs upgraded Viking Holdings due to its unique geographic exposure and limited Caribbean voyages, contrasting with Norwegian Cruise Line's market saturation issues [5][3] - Viking's differentiated business model focuses on upscale, child-free cruises primarily in Europe, catering to intellectual interests rather than typical cruise activities [8] Future Outlook - Analysts predict Viking could double its EPS growth, supported by future capital return programs, leading to a price target increase from $66 to $78 [6] - Despite its stock nearly tripling since the IPO, Viking maintains a reasonable price-to-earnings ratio of 31, suggesting further growth potential [10]