Viking Holdings (NYSE:VIK) shares have fallen 20% from their peak, but CNBC host Jim Cramer sees the sell-off as a potential buying opportunity. Cramer has recommended that investors consider buying the cruise operator following the recent decline.
On Monday, Cramer argued that investors are overreacting to temporary disruptions despite the company’s strong underlying business. He lauded Viking’s robust bookings and high-end customer base, advocating that investors seize this opportunity and “buy the dip.”
"I think they’re fantastic and the stock is absolutely worth owning,” Cramer said.
The “Mad Money” host praised Viking’s strong forward bookings and overall performance, calling the numbers "tremendous." He also backed the company’s decision to compensate passengers affected by river disruptions, saying it could help preserve customer loyalty.
Viking primarily targets affluent, older travelers and differentiates itself through its extensive river-cruise offerings. Cramer said its upscale customer base could help the company remain resilient amid inflation and rising energy costs.
Viking’s sell-off has lowered its valuation to about 22 times projected next-12-month EPS. While still higher than other major cruise lines, Jim Cramer believes the premium is justified by Viking’s stronger growth, profitability and balance sheet.
Viking Faces Cruise Industry Headwinds
Viking Holdings, a prominent name in river and ocean cruises, has witnessed a considerable dip in its shares from their peak of $108 on August 5. This drop reflects the broader stress on cruise stocks due to escalating oil prices and global instability, coupled with Viking-specific challenges.
Due to low water levels in the Danube and Rhine rivers, Viking has had to modify some of its routes, leading to the distribution of vouchers to impacted passengers. This has resulted in expenses that will persist through 2027 and 2028 as these vouchers are used.
Viking has consistently demonstrated strong performance, as evidenced by its second-quarter 2026 results that surpassed Wall Street expectations, backed by increased capacity, pricing, and robust demand. Viking had sold 96% of its 2026 capacity and 53% of its 2027 capacity by early August. Bookings rose 13% to $6.39 billion for 2026 and 21% to $4.71 billion for 2027, while booking value per passenger cruise day increased 6% and 10%, respectively. Viking’s operating capacity is set to grow 7% in 2026 and another 15% in 2027.
Benzinga’s Edge Rankings place Viking Holdings in the 75th percentile for momentum and the 13th percentile for value, reflecting its mixed performance. Benzinga’s screener allows you to compare VIK’s performance with its peers.
VIK Price Action: Over the past month, VIK Holdings plunged19.09%, as per Benzinga Pro. On Monday, 2.67% lower at $86.14.
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